Obama administration keeps claiming that a million jobs would have been lost without car company bailouts
From yesterday's WH press briefing.
1) General Motors would have gone into bankruptcy. Bankruptcy is not the same thing as eliminating the company. Viable operations that could make a profit would continue.
2) Where did the government bailout money come from? The government "creates" some jobs only by taking money away from where other jobs would have existed.
one that is adding rather than shedding jobs, and a decision in and of itself that likely saved a million jobs and communities -- certainly saved communities from economic devastation. . . .
1) General Motors would have gone into bankruptcy. Bankruptcy is not the same thing as eliminating the company. Viable operations that could make a profit would continue.
2) Where did the government bailout money come from? The government "creates" some jobs only by taking money away from where other jobs would have existed.
Labels: bailout
posted by John Lott at 1:09 PM
1 Comments:
When you create jobs through deficit spending, you don't lose jobs somewhere else by "taking money away from where other jobs would have existed" until you actually take the money away.
If, instead of taking the money away from somewhere else, you pay for the deficit created by the new jobs through inflation or by raising taxes, then you are paying for the new jobs by reducing everybody's standard of living.
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