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→Who Really Creates Jobs?: Government and job creation (or lack thereof)
==Who Really Creates Jobs?==
==Who Really Creates Jobs?==
Economists have observed that it is not the size of a company, but rather the age of a company that is correlated to job creation. A majority of jobs are created by young start-up companies, and established companies are often net job destroyers.<ref>Badger, Emily. "Do the Rich Really Make All the Jobs?" September 22, 2011. Miller-McCune. http://www.miller-mccune.com/business-economics/do-the-rich-really-make-all-the-jobs-36382/</ref> However, failed start-ups do result in job destruction. It takes capital to start businesses, which means that the people at the heart of job creation are likely to be wealthy, but that does not necessarily mean that all wealthy people are job creators.
Economists have observed that it is not the size of a company, but rather the age of a company that is correlated to job creation. A majority of jobs are created by young start-up companies, and established companies are often net job destroyers.<ref>Badger, Emily. "Do the Rich Really Make All the Jobs?" September 22, 2011. Miller-McCune. http://www.miller-mccune.com/business-economics/do-the-rich-really-make-all-the-jobs-36382/</ref> However, failed start-ups do result in job destruction. It takes capital to start businesses, which means that the people at the heart of job creation are likely to be wealthy, but that does not necessarily mean that all wealthy people are job creators.
===Government===
Governments are considered by some to be job creators. Left-leaning studies have shown that government spending has been effective in generating employment.<ref>http://www.eric.ed.gov/ERICWebPortal/search/detailmini.jsp?_nfpb=true&_&ERICExtSearch_SearchValue_0=ED235568&ERICExtSearch_SearchType_0=no&accno=ED235568</ref> But even if the government is a large employer, that doesn't necessarily mean it is a job creator. The principles of [[capitalism]] and [[small government]] tell us that many, if not most, goods and services commonly provided by governments can be [[efficient]]ly provided by the private sector. This means that the government jobs associated with these goods and services can be provided by the private sector - government spending merely redistributes existing jobs while introducing economic inefficiency<ref>http://www.cato.org/pub_display.php?pub_id=914</ref>. On the other hand, it is difficult to argue that cutting government spending will create jobs in the short term, because government spending either pays government employees' salaries directly or it pays for goods or services supplied by the private sector.<ref>http://online.wsj.com/article/SB10001424052702303635604576392023187860688.html</ref> It is more likely that spending cuts will destroy jobs in the short term.
==References==
==References==