Our government does not and cannot for any sustained period create jobs; the entrepreneurial spirit of the American people creates jobs. Even the slightest suggestion that our government should take on any portion of this responsibility only serves to dampen and make stagnant that spirit. The reason the unemployment rate is high and on the rise, ironically, is because too many people are looking for jobs and too few are creating them. In fact, the term “job creation”, as it is popularly used is an oxymoronic phrase that epitomizes cart-before-the-horse thinking.
Jobs are born of a business need and remain in existence as long as that business need persists. Businesses, fueled by the spark of entrepreneurialism, emerge and continue as going concerns as a result of consumer demand that consists of individual and collective needs and wants. This is not a “chicken or the egg” paradox; it is clearly evident that the individual and collective needs and wants exist first, then the business along with its respective jobs is designed in order to fulfill those needs and wants. Many businesses have other businesses as their clients, in which case the jobs within the supplier business are designed to enable the supplier business to fulfill the needs of the client business. This vertical integration within commerce is the essence of the supply chain concept and where the majority of jobs actually exist.
Given the nature of commerce within the United States, it is preposterous to believe that anyone or any governmental body can create a lasting job that is not dictated by a real business need or create a lasting business that does not serve an individual or collective demand.
Even government and non-profit organizations are subject to this caveat, though their susceptibility may be somewhat obscured by politics. If, for example, an elected official prescribed during his or her term that an unnecessary project be commenced simply for the purpose of creating jobs (i.e. repetitively building a wall and tearing it down only to rebuild it again), such a proposal would undoubtedly be met with public scorn and that official certainly would not be re-elected and may not even enjoy the privilege of a full term in office (certainly, we can all still recall the infamous “Bridge to Nowhere” that gained notoriety during the 2008 Primary Election Campaign). Eventually, unnecessary activity performed simply for the sake of creating jobs ceases, absent the grace of public demand.
Some might argue that the creation of certain government organizations such as the military, a police force, an emergency medical service, or even a public bridge repair company might provide an exception to this rule, but they would be incorrect. All of the aforementioned services, when created in the appropriate scope and capacity, fulfill a collective demand and the elected official is actually practicing a form of entrepreneurialism in which his or her risk or gain is measured not in dollars, but in length of term in office. When created in an inappropriate scope or capacity (i.e. a military that is deemed larger than necessary, a police force or emergency medical service that serves an unpopulated area, or a public bridge repair company that repairs bridges that are not in need of repair), it is easy to see that these services (or at least a portion of them) were not created to fulfill a collective need and should be relegated to the “unnecessary activity” category.
Notwithstanding the need for valid jobs, entrepreneurialism only addresses half of the unemployment issue; the other half deals with the employability of the individual. In other words, individuals must possess or be inspired to gain the knowledge, skills, and experience that are required by the business in order to gain employment. Even in times of high unemployment like these, employers still struggle to find candidates that are qualified to fill millions of new positions that spring up daily.
Given that entrepreneurialism creates businesses in order to fulfill individual or collective needs and creates jobs that only qualified individuals can fill, a radical paradigm shift is in order; a shift away from the employee erroneously assuming that he or she has a right to a job and a paycheck and in the direction of universally embracing the concept of value proposition. The entrepreneur must have a value proposition to his or her customers in order for his or her business to be successful and the employee must have a value proposition to his or her company in order to gain and keep employment. Then, and only then, will the unemployment crisis subside.
Definitely makes one think. And with all of the politicians talking about creating jobs!! That’s a laugh!
Renee, don’t get me wrong. I agree 100% that government policy should be pro-business so that the entrepreneurs and existing business owners can do the heavy lifting. The distinction, however, between the roles that entrepreneurs/owners vs. government should play in the whole process is very much to my point and should not be ambiguitized (yes, I just made that word up, but I’m going with it, lol). I also believe that it is a less than perfect perspective of this distinction that has led our governement and individuals to take actions that have actually made the situation worse (i.e. bail outs, occupy this or that, etc.).
I’ll use driving a car as an analogy in which the entrepreneur/owner is the driver and the government is responsible for maintaining the road on which the car drives. In order to get the car (or fleet of cars) to move faster, the government should make sure that the road is level and free from debris, but the driver has to actually drive the car faster in order for the speed to increase. Only when we can get a clear operational definition around who “does” (versus enables) can we even begin the discussion about resolving unemployment.
After all, a job is a byproduct of commerce–not a commodity that is produced from raw materials nor a service that is provided by the efforts of an individual. As a matter of fact, a job perhaps would be best termed the anti-commodity since it is the mechanism by which all goods and services are produced.
Absolutely agree with Richard St. Rose………..
As the Managing Director of Greek Economic Metamorphosis [GEM], whose muission is to revive and propel to great success private venterprises in Greece and Cyprus
In overview terms, ….. GEM promotes and FUNDS…. business enterprises…. projects….and many types of economic endeavors ….that will be domiciled in Greece and/or Cyprus……These can be new or expansions of existing enterprises…..new innovative and visionary undertakings are favored……enterprises with high export and/or import replacement components are high priority endeavors….. high employment enterprises are highly sought. GEM, will, also, provide financial support for enterprises providing essential goods and services that are experiencing financial difficulties.
GEM is an ACTION movement ….. providing tangible solutions to the economic needs of Greece and Cyprus….by attracting and FUNDING needed successful economic activity.
We want to register as a Non Government Organization…..so that we can enter into a TREATY with the Greek Government to suspend many of the strangulating laws and regulations that choke businesses to oblivion…..and provide tax relief for a period of years to allow economic growth to flurish………[since trying to modify laws and regulations through parliamentary and beaurocratic processes would take a long time....and the need in now]
Hello Dean. GEM sounds like a terrific organization that will play a key role in The Entrepreneurial Revolution. The more we can get global organizations to focus on the needs of small and large businesses, the closer we will get to eradicating unemployment.