Well-Respected Economist: Government Creates Jobs

In a must-read blog post, respected economist Timothy Bartik takes down the pernicious myth that “government doesn’t create jobs.”

This myth, Bartik writes, is based on a “profound misunderstanding” of how the economy works.  That it’s commonly held by policymakers contributes to misguided economic policies that fail to take into account the important role that government investments and services play in the economy.

But a more perceptive analysis recognizes that all sectors of the economy ideally can provide productive goods and services that can help contribute to greater well-being. Our economy is interdependent. The value of what we produce, and the number and quality of jobs, can be affected by all sectors of the economy… This includes the government.

[snip]

But more importantly, if government provides productive services, it helps support the private economy. These supports include a legal system of property rights, a criminal justice system that preserves public order, roads and other transportation infrastructure that facilitate commerce, and human capital development programs that develop the skills of the labor force.

Bartik’s words are strongly supported by the evidence from a considerable body of research demonstrating how many public investments do indeed create jobs and strengthen the economy.  It’s only when there’s widespread recognition that “at any given point in time, the path to greater prosperity potentially may be found in any sector of the economy” will we be able to focus on developing and implementing cost-effective policies to create jobs and promote shared prosperity.  And oftentimes, particularly when unemployment is high, the sector with the greatest social and economic return on the next investment dollar is the public sector.

Top Stories from NCPW

  • News
  • Commentary

With nearly 200 active COVID cases among students and staff, board will revisit mask mandate Monday [...]

Like millions of women, Sarah Anderson saw her income drop during the pandemic when her two part-tim [...]

Proposals would fund universal pre-K and free community college, hasten shift to renewable energy WA [...]

Last week, the Prison Policy Initiative published a report – "States of Incarceration: The Glob [...]

Vaccine refusal is a major reason COVID-19 infections continue to surge in the U.S. Safe and effecti [...]

Abortion is a common and normal part of the range of reproductive healthcare services that people ha [...]

Zac Campbell paused suddenly and took a minute to gather himself, while colleagues shuffled toward h [...]

Read the story by reporter Lisa Sorg here. The post Clear and present danger: Burlington’s Tarheel A [...]

A Clear and Present Danger

 

NC’s Tarheel Army Missile Plant is a toxic disgrace
Read the two-part story about the Army’s failure to clean up hazardous chemicals, which have contaminated a Black and Hispanic neighborhood for 30 years.

Read in English.


Haga clic aquí para leer: Peligro inminente
Una antigua planta de misiles del Ejército ha contaminado un vecindario negro y latino durante 30 años.

Leer en español.