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CSE 1.9 Stossel Macro 04- Government spending jobs and unemployment

by Joe Calhoun

John breaks several windows in an apartment to illustrate how jobs would be created by the destruction. Cleaning crews, window repairers, glass manufacturers, and many others would see an increase in demand for their services. At first glance it looks like the economy is helped because the destruction creates jobs and expands employment. But wait a minute: the destruction also destroys wealth and if the funds had not been spent repairing the damages, they would have been spent elsewhere. Therefore destructive acts do not create jobs, they merely re-shuffle them. Furthermore, the destruction reduces wealth and the availability of goods and services for consumption.

CSE 1.9 Stossel Macro 04- Government spending jobs and unemployment

John breaks several windows in an apartment to illustrate how jobs would be created by the destruction.

from 20/20 (2006)
Creator: ABC News
Posted by Joe Calhoun
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