JOB CREATION

[dtotire]

I just wrote out this essay on how to create jobs, after hearing a political advertisement saying we do not need more spending to create jobs. I tried to make it as concise as possible, in order that someone of average intelligence would be able to understand it. I would like to see it sent out to local newspapers in Letters to the editor. Any comments on this essay? Thanks.





To increase the number of jobs, and reduce unemployment, you have to increase the Gross Domestic Product, or, GDP. The equation for GDP is: C + I + G + X - M, where: C = Consumer Spending, I = Private Investment, G = Government purchase of goods and services. X = the value of exports, M = value of Imports. Increasing C, I,G, or X will increase the GDP, and the number of jobs created. When private investment declines, there will be increased unemployment. To increase I, you have to increase demand, but if there is more unemployment, C will also decline, and the GDP will shrink, and with it, taxes paid to the Government. The most practical way to increase total demand, and with it, private investment, is to increase Government spending, or G. As private investment increases. there will be more jobs created, more profit, and more people will be paying taxes, and the deficit will decline. This takes time. Government spending should be directed to investments in the infrastructure, education, and supporting basic research, and in this way we will restore the prosperity of our country. This is borne out by our history, and in the experience of other countries.

[RKP5637]

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