Who Gives A Damn About Jobs?

Good, now that I have your attention I will begin:

Jobs tend to dominate the economic punditry:  President-Elect Trump’s touts about bringing jobs back from overseas (or, inversely Bernie Sander’s admonishes for sending jobs overseas), this company or that company is killing jobs, etc etc etc.  But all this misses the point.

Creating jobs is easy.  Simply ban all labor-saving devices:  washing machines, cars, computers, calculators, shovels, TVs, sound equipment. Basically anything mechanical.  Ban it. If a President were to get such legislation passed, he’d have the greatest job creation record of all time.  You will have tons of jobs, but lots of poverty, too.

Labor is a cost.  It is an input.  The goal of any cost is to minimize it with regards to the ideal level of leisure (leisure time being the opposite of labor time) and maximize one’s returns.  A simple example:  Dr. Doofenschwirtz invents a machine that produces everything anyone could want just by pressing a button.  Out of the kindness of his heart, he gives one to everyone on the planet.  The proliferation of such a machine would necessarily eliminate jobs, but people would be better off because of it.  This would allow people to focus on other things.

Lest I be accused of fantasizing, my above example is a simplified, and extreme, version of how trade works.

In conclusion, it is not the number of jobs that matter.  That is a pointless statistic.  Rather, it is how people can maximize their wealth by minimizing their labor.

One thought on “Who Gives A Damn About Jobs?

  1. Yep. If I had enough wealth, I would not work anymore. There are many other things that I am interested in doing. I love what I do to make a living, but I’d rather be doing something with my family instead. Unfortunately, my government has been working against my wealth creation activities for years, which has prevented me from pursuing those other interests to the extent I desire.

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