Here’s an interesting video. (H/T Ari)
See that guy? He’s your potential boss. Stop messing with this business and maybe he’ll hire you.
Tag Archives: Private Sector
Private sector jobs are lost when government creates public sector jobs
Here’s a story in National Review. (H/T ECM)
Excerpt:
In this paper, published in Economic Policy Journal, economists Yann Algan, Pierre Cahuc, and Andre Zylberberg looked at the impact of public employment on overall labor-market performance. The authors use data for a sample of OECD countries from 1960 to 2000, and they find that, on average, the creation of 100 public jobs eliminated about 150 private-sector jobs, decreased overall labor-market participation slightly, and increased by about 33 the number of unemployed workers.
Their explanation is that public employment crowds out private employment and increases overall unemployment by offering comparatively attractive working conditions. Basically, public jobs that offer higher wages, require low effort, and offer attractive fringe benefits attract many workers and crowd out private jobs. This is especially true when the public jobs exist in the private sector (transportation and education, for instance). The impact is bigger when these new employees are paid with new taxes.
The bottom line is that it is possible that, by increasing public employment, the stimulus money is further hurting private jobs.
And that’s why the unemployment rate is so high after a government spending-spree. The money for non-productive public sector jobs come from the productive private sector.
Walter Williams explains why the free market is better for consumers
He is talking about whether we people should take their services and products from businesses or from government.
Excerpt:
Compare our level of satisfaction with the services of those “in it just for the money and profits” to those in it to serve the public as opposed to earning profits. A major non-profit service provider is the public education establishment that delivers primary and secondary education at nearly a trillion-dollar annual cost.
Public education is a major source of complaints about poor services that in many cases constitute nothing less than gross fraud.
If Wal-Mart, or any of the millions of producers who are in it for money and profits, were to deliver the same low-quality services, they would be out of business, but not public schools. Why? People who produce public education get their pay, pay raises and perks whether customers are satisfied or not. They are not motivated by profits and therefore under considerably less pressure to please customers. They use government to take customer money, in the form of taxes.
The U. S. Postal Service, state motor vehicle departments and other government agencies also have the taxing power of government to get money and therefore are less diligent about pleasing customers. You can bet the rent money that if Wal-Mart and other businesses had the power to take our money by force, they would be less interested and willing to please us.
The big difference between entities that serve us well and those who do not lies in what motivates them. Wal-Mart and millions of other businesses are profit-motivated whereas government schools, USPS and state motor vehicle departments are not.
Businesses can only make money by pleasing customers. Customers who freely choose to trade money for products and services. But government can make money by raising taxes. All they have to do is tell lies, win popularity contests and buy votes.
WINTERY KNIGHT 