Government Does Not Make Jobs Possible

Harking back to my earlier post about clueless “you owe everything you have to the government” US Senate candidate Elizabeth Warren, here's an object lesson about how government is not the leading 'agency' when it comes to roads, utilities, housing, and so on being the only thing that allows entrepreneurs to create anything, including jobs.

To take a look at her lunatic vision and how it is so wrong all we have top do is look to China to see how absolutely wrong she is about the whole thing.

China, anticipating the need for more housing, schools, and recreational facilities for all the people who will be working for all of the new businesses have built entire new towns and cities to provide all those things. The only problem? They're empty. Every. Single. One. Of. Them. Some have been empty for ten years and the only people living and working in them are the government employees tasked with maintaining these ghost towns.

I'm sure Elizabeth Warren would think such a venture is exactly how things have been done in the US. But that isn't the case. History shows that businesses arrive, build factories and the roads that lead to them. They pay to have water, sewer, and gas lines run to their businesses. The same is true of electrical and telecommunications lines. The government doesn't pay for any of that.

Well, that's not entirely true.

Some states, cities, or towns cut deals in order to entice new businesses to come to their areas. Some even go so far as to take private property by eminent domain to hand over to them all in the name of increasing the chances of having new jobs come into being. (That worked out so well for the city of New London, Connecticut after they won their case in the US Supreme Court – the infamous Kelo vs New London decision.)

But to attribute all of the infrastructure needed for businesses to even operate solely to government is being disingenuous at best and irrational at worst. For the most part developers pay the cost of adding to the infrastructure need to support new construction, not the taxpayers. And then the businesses pay utilities bills for the electricity, water, gas, and sewer services, sometimes to the municipality and sometimes to private utilities. But none of that is paid for through taxes. So Warren's claims that government is the one who provided all those things is only partially correct, end then only peripherally. Government may be the agent for some of those things, but they generally don't use taxpayer dollars to provide those things.

Roads are different, but even then it isn't as if roads were built just for the businesses she's demonizing. They were built for everyone, including her and the businesses that provide the jobs for the people she says she wants to serve.