March 5, 2010 Leave a comment
Drug mega-giant Pfizer recently dealt with its bloated payroll in St Louis, Missouri, by laying off over 600 employees.
It had hired them in order to gain reduced tax punishment from the local government. It was given a “break” of almost seven million dollars on the massive property tax, in return for hiring over one thousand employees…apparently more than it would otherwise have chosen to hire, or else the “break” would have been a meaningless loss of revenue for a money-strapped government.
Maintaining make-work welfare jobs, of course, was just a needless burden on the company. Eventually, such government coercion contributed enough to its woes that Pfizer actually found it necessary to lay off over half of its staff. In all likelihood, this backlash resulted in fewer jobs left-over than if it hadn’t over-hired to begin with.
When the government “encourages” hiring, it creates an employment bubble, just like when it encouraged home ownership, it created a housing bubble. When the bubble bursts, the net result is more harm than good, just as with housing.
Government “stimulating jobs” causes even more job loss, in the long run.
And yet Congress is about to pass a “jobs bill” that involves tax breaks for make-work hiring. Companies will be pushed to employ people they wouldn’t have otherwise chosen to do, essentially being forced to live beyond their means. In the long run, as with the housing boom and with Pfizer, this will backfire and cause MORE unemployment.
When the government “creates” a job, it’s just engaging in another form of welfare. A job “created” where one wasn’t actually needed has no honor, and causes harm. It is a burden on society…one that will come back to haunt, just the way the stimulus spending, bailouts, and other government busybody behavior will do.
The way to create jobs is not to “create” them directly, any more than you make sickly person healthy by giving him cocaine to create energy. Jobs are a means to an end, not an end in themselves. They work because people work to create more wealth than their job pays, justifying its existence. What we need is more wealth creation, and then the jobs will come naturally. And what is stifling job creation, already, is massive government regulation and interference, including the “stimulus” spending that out-competes healthy private ventures.