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Only business can. While the government may seem to create jobs when it hires people or buys things, it destroys at least as many jobs as it creates when it does so.

Via Hyscience, which links to this article from the Wall St Journal about the lessons to be learned from government economic policy in Texas and Ohio.

When governments try to create jobs, or stimulate the economy, or support industry or ‘good causes’, they can only do so by taking money from business. Which means fewer people employed, less reason to take the risk of investing in business, reduced production of saleable commodities, lower profits from which to pay taxes, less income to government, less capacity to care for the poor.

Ohio has an economy burdened by high taxes and work rules that impose heavy costs on employers. Texas embraces free trade, keeps taxes low, doesn’t impose unions on business and has tooled itself for 21st century global competition. Ohioans may not like to hear this, but for any company considering where to locate a new plant or move an existing one, the choice between Ohio and Texas isn’t even a close call.

Texas has lower unemployment, higher average personal income, and creates more jobs and more exports.

The lesson is, the less government tries to do, the better off everyone is.

Government cannot create jobs, only business can.

Are you listening Mr Rudd? Mr Obama?

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