This pearl of economics wisdom is from Ross Gittins:
Does anything else more need to be said?
Hell yes. Ross Gittins. Please stop writing. You are consistently wrong, and especially so with other peoples money.
GOVERNMENTS DO NOT CREATE JOBS.
Please don’t anyone say but (public sector) nurses, teachers and police. Nonsense. To get the funds to pay the nurses, teachers and police, governments take (by force at the point of a gun) money from the private sector and in doing so destroy other private sector jobs.
Governments can borrow to pay for these nurses, teachers and police. But that is just taxing from tomorrow to pay for today.
GOVERNMENTS DO NOT CREATE JOBS. Period.
So says Mr Gittins:
In high school economics it’s called “the circular flow of income”. They ought to write a song about it: the money goes round and round. That’s because what’s a cost to an employer is income to their employee. And when that employee spends part of their wage in another employer’s business, that cost to the employee becomes income to the other business. (I know it’s complicated, but stick with it.)
There is a reason we don’t take advice, especially financial and economic advice, from high school students. They, like Gittens don’t know what they are talking about and have no judgement.
This “song”, like much of Gitten’s economic advice is utter nonsense. Nonsense.
Economies grow through production and not consumption; and passing money back and forth is not even consumption. It’s like that old joke about the 2 economists walking down the street, let’s just call them Paul Robin and John Maynard.
One day Robin and Maynard were out for their daily walk, they came across a recent canine dropping.
The economists paused when John Maynard turned to Paul Robin and offered him $50,000 to taste the droppings. Paul Robin considered the risks, rewards, cost and benefits and decided that he would do it. So he tasted the droppings, money was exchanged and they keep walking.
Some 100 meters further down the road, the economists encountered another canine dropping. This time, Paul Robin offered John Maynard $50,000 to taste the droppings. John Maynard considered the risks, rewards, cost and benefits and decided that he would do it. So he tasted the droppings, money was exchanged and they keep walking.
As they walked further, the economists paused. John Maynard turned to Paul Robin and said – Paul, we have both just tasted dog droppings, but neither of us is any better off. To which Paul Robin briskly replied, perhaps, but the economy has just grown by $100,000.
Mr Gittens. Please just retire. Or otherwise just eat your share of dog droppings to stimulate the economy.