Government ‘investment’ doesn’t create jobs; the private sector does

Published January 30, 2011 5:00am ET



With unemployment remaining above 9 percent and showing no signs of going down any time soon, there’s lots of talk in Washington about job creation. For President Obama and congressional Democrats, unemployment is an opportunity for government “investment” in massive public works projects such as manufacturing solar shingles and building high-speed rail lines. At best, such big-spending projects by the federal government mainly create temporary jobs while building things of dubious consumer value. More often, these government spending projects funnel tax dollars to Democratic political allies like the unions that benefit from Project Labor Agreements. These PLAs bar nonunion workers, thereby driving up costs to taxpayers.

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