The WSJ Political Diary recently had a story about the RINO Senator Chuck Hagel and how he shares a vision with Barack Obama that what America lacks right now is a “national infrastructure bank.” For just a modest $60 billion over 10 years to finance projects, the bank will “create” two million new jobs.
Regardless of whether America needs to work on its infrastructure, the idea that government can create jobs is an economic falacy. This proposed national infrastructure bank is simply a new tax on all citizens. Every dollar taken away from taxpayers is one dollar less they have to spend on other stuff. Thus, for every job that is created by funding from this national infrastructure bank, a private job has been destroyed elsewhere.
In essence, government job creation is simply government sleight-of-hand where at best there is a diversion of jobs from economic sector to another.
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