The View From 1776
Tuesday, November 01, 2011
Green Job Productivity
This article from the Mises.org website deals with the lack of economic productivity of government jobs in general.
So-called green jobs come under the same analytical rubric. Nominally in the private sector, they would not exist in the absence of government subsidies and discriminatory regulations.
The overwhelming majority of people, even if they think that wind power, solar power, or an automobile running on electricity are good ideas, would walk away when presented with a full-cost bill for the product. Which is why corporate, private, and institutional investors, in a free-market economy where invested funds must earn their keep, won’t knowingly put their money into such deals. They make no economic sense.
From the Keynesian economic perspective of President Obama and his fellow liberal-progressive-socialists, however, an economic project need not be profitable without government intervention. Indeed, profit is equated with the sin of greed.
Keynesian doctrine preaches that government deficit spending is a form of saving and that any government spending on any project, however ridiculous, will stimulate the entire economy to produce more than the amount of the government expenditure.
Regrettably, as experience since 1933, and in our current Great Recession, proves, the real world doesn’t work that way.