In August, the United States created no jobs at all. Zero.
The US created no net jobs is true, but the US created no jobs is nonsense.
It is Mr. Dillow who has been pointing this out for years. All economies are creating and destroying jobs all the time. The rise in unemployment, or the fall in it, comes when the process of creation or destruction becomes dominant. And that balancing figure is a small part of the whole movement too.
I think I’m right in saying that the UK economy creates/destroys some 3 million jobs a year, about 10% of all jobs. That number, from memory, might be a little on the low side. The US economy it’s a little higher, about 15% I think. I’ve seen one number of 3 million a month which strikes me as a little over the top.
Now, OK, you might think this is trivial but it isn’t. If you go around saying that “no jobs” have been created then you can end up starting to think that anything that creates jobs is just fine. Any job at all.
But when you understand that unemployment is the difference between the destruction/creation rate the whole problem becomes much more subtle. Yes, creating more jobs on net might well be a good idea: but you really do want to make sure that you’re not increasing the destruction rate by doing so. Or perhaps slowing the creation rate in some part of the economy you’re not looking at. Or even you’re just creating jobs for those who would find them anyway.
Take that latest jobs report that Rubin mentions. Mining employment rose. Just market forces you understand. Yet many say that we should beat unemployment by putting up windmills. Create jobs. So, those people who put up windmills: are they likely to be the inner city deadbeats? Or those who could already get a job in mining (the skills are not exactly the same but they’re comparable)?
It all becomes more complicated in this real world, doesn’t it?
As to this proposal:
And a wealth surtax of 2% should be applied to all wealth in excess of $7m.
Twat. Capital taxation is the worst of all forms of taxation if its growth you want to see. And he is saying that he’d like to see some growth, isn’t he?