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It is no wonder that, many people consider a policy "protection of workplaces"
Quite proved, despite all its inaccuracy.
Let's consider one more error following from inability to accept in
Attention secondary effects. Politicians assert often that
The governmental expenses on priority programs increase employment.
Certainly, there can be reasonable bases for the state
Activity on a construction of roads, expansion of police service,
To improvement of judicial system, etc. Creation of workplaces, however, not
Enters into this number.
Really, suppose, that the government spends 2 bln. dollars, employing
Workers for construction of the high-speed railway line connecting
Windsor with Montreal. How much workplaces this project will create? If
To take into consideration secondary effects the answer will be: any. For
The government can use financings of this project or taxes,
Or a public debt. Taxes at a rate of 2 bln. dollars will reduce as
Consumer expenses, and private savings, having destroyed thereby
It is exactly so much workplaces, how much they will create the governmental expenses.
If the project is financed at the expense of a public debt, it will result
To increase of interest rates and reduction of private investments and
Consumer expenses on the same sum of 2 bln. dollars The same as and in
Case with trade restrictions, result there will be a redistribution
Workplaces, and at all their creation. Whether follows from here that the given
The project should not be carried out? At all is not present. But its substantiation should proceed
From those benefits which will be brought by a high-speed railroad line, and
Not from illusory hopes of employment expansion.
Seven sources of economic progress
Private property: people work more assiduously and more rationally use
Resources when the property is private
Freedom of exchanges: the political measures interfering exchanges, constrain
Competition: competition forces to use with the maximum benefit
Resources also is a constant source of progressive innovations
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