Jobs and Economics

Herbert Meyer at American Thinker explains some basic economic principles, and why free market principles are the best way to create new jobs.

Broadly speaking, a country can choose one of two economic operating systems. It can be a free-market economy, or it can be a command economy. In a free-market economy, businesses work within the rules set by government to sell their products and services, but no one is in charge. In a command economy, there may still be privately owned businesses, but the government’s role is so large that it really calls the shots. Because each country — unlike each cell phone owner — designs its own operating system, no two economies are precisely the same. So our country’s free market is somewhat different from Canada’s, which itself is different from Germany’s, Australia’s, Poland’s, and so forth. Likewise with command economies. Still, the similarities among all free-market economies are more striking than the differences, and all command economies are pretty much the same, whether it’s a left-wing or a right-wing government in power.
In a free-market economy like ours, it’s the entrepreneurs who create jobs. The dictionary defines “entrepreneur” as “a person who organizes and manages a business undertaking, assuming the risk for the sake of the profit.” An entrepreneur can be world-famous, like Apple’s Steve Jobs, or that entrepreneur can operate a small business like a diner, a hardware store, or a factory that manufactures valves. Your dentist is an entrepreneur, and so’s the algebra tutor your parents made you hire so you won’t flunk that course a second time.
If you want to create a lot of jobs, create an environment in which entrepreneurs will thrive. They’ll take it from there, because creating jobs is what entrepreneurs do. Here’s another way to think about it: You people drink a lot of milk. Well, milk comes from cows. If you want more milk, create an environment in which cows will thrive.
And just as it makes no sense to say that you want more milk but you oppose cows because they’re smelly, dirty, and leave their droppings all over the place, it also makes no sense to say that you want more jobs but oppose entrepreneurs because they’re greedy, pushy, and often wealthier than the rest of us. You cannot have it both ways, and if you don’t like how the world works, then go argue with Him, not with me. (And you won’t be the first to squawk: King Alphonso X of Spain once complained that “had I been present at the creation, I would have given some useful hints for the better ordering of the universe.” Well, he wasn’t present at the creation, and neither were you.)

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