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That may sound promising, but the truth is, drumming up new jobs on short notice isn't exactly in the government's wheelhouse. In the long term, what the government does and doesn't do is incredibly important to the health of the labor market. Trade policy, corporate tax rates...

Author: /time Magazine | Title: Can the Federal Government Really Create Jobs? | 12/8/2009 | See Source »

Such a targeted type of program has a good shot at doing what it sets out to do. The downside: intervening in the economy in such a precise way is almost by definition not expandable. Cash for Caulkers would give building contractors a boost, but they represent a small slice...

Author: /time Magazine | Title: Can the Federal Government Really Create Jobs? | 12/8/2009 | See Source »

Hire More People to Work for the Government Perhaps the easiest way for the government to create jobs is for it to create government jobs. The example quoted most often: the federal Works Progress Administration (WPA), which during the late 1930s employed more than 8 million people. The jobs were...

Author: /time Magazine | Title: Can the Federal Government Really Create Jobs? | 12/8/2009 | See Source »

Do we want the Federal Government deciding which jobs should be created in our economy? In capitalism, the answer to this question in the long term is no. However, in the short term, there is a different economic argument that could plausibly take over.

Author: /time Magazine | Title: Can the Federal Government Really Create Jobs? | 12/8/2009 | See Source »

Coming out of a recession is a tricky thing. Companies feel like it might be time to start ramping production back up, but demand hasn't fully returned, so they hesitate to hire. The conundrum: demand in the U.S. is overwhelmingly consumer-driven and people need to have jobs to...

Author: /time Magazine | Title: Can the Federal Government Really Create Jobs? | 12/8/2009 | See Source »

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