Good Morning Liberty Bernie's "Universal Jobs Guarantee" only guarantees LESS productivity in our economy | Episode 128
Today we talked about Clay Aiken's meltdown in front of a crowd of thousands at Politicon this weekend. The Immaturity, oh the immaturity.
We also spent a lot of time discussing Bernie Sanders' plan for a Universal Jobs Guarantee. It reminded us of this story from the great Economist Milton Friedman.
Economist Milton Friedman was once traveling overseas and spotted a construction site in which the workers were using shovels instead of more modern equipment like bulldozers. When his host responded that the goal was to increase the number of jobs in the construction industry, Friedman replied, "Then instead of shovels, why don't you give them spoons and create even more jobs?"
Friedman hit the nail on the head. If your goal is more jobs in America, why not just get rid of all the tractors, combines, planters, and automobiles? Everyone will be guaranteed to have a job.
Of course, that would be a terrible idea. The goal would be for those jobs to add value in society. The problem with added Federal jobs is that the money to pay those positions must first be taken from productive sides of the economy. Thus, the job you "create" using tax money must add more value than the productive use that money would have had in the hands of it's original owner.
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