Millions of new jobs?

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About that $1-trillion infrastructure bill approved by the US Senate with the help of 19 Republicans…

President Biden says the bill will “create millions of good-paying jobs. This bill makes key investments to put people to work all across the country. It’s going to put Americans to work in good-paying union jobs building and repairing our roads, bridges, ports, airports.” 

Not so fast.

According to the Wharton Business School, the proposal would have a net zero effect on employment, wages, and economic growth over both the medium-term (by 2031) and the long-term (by 2050).  

More bad news. The bill adds $351 billion to the national debt. Let’s put that in perspective. If the bill becomes law we would create about $2,449 in new debt per federal taxpayer.

How come zero net jobs?

Won’t public sector jobs be created?

Yes, and that’s the problem.

Resources invested in spending on government infrastructure aren’t headed toward private sector-investments.

I discovered this great analysis by Henry Hazlitt, author of “Economics in One Lesson.” Consider, Hazlitt wrote, a government bridge-building program.

“For every public job created by the bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. The employment argument of the government spenders becomes vivid, and probably for most people convincing. But there are other things that we do not see, because, alas, they have never been permitted to come into existence.

“They are the jobs destroyed by the [money] taken from the taxpayers. All that has happened, at best, is that there has been a diversion of jobs because of the project. More bridge builders; fewer automobile workers, radio technicians, clothing workers, farmers.”

Millions of jobs created? Remember, this is from the guy who said twice that 350-million of America’s 332-million people have been vaccinated.

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