Nearly everyone agrees that job growth is essential to economic progress. Those who want something, from voters (votes) and/or government (tax breaks and other subsidies), tend to buttress their arguments with the promise of new jobs.
Be careful, new jobs aren’t always “net” new jobs.
Investors and taxpayers might want to take a closer look at some of the claims of alleged benefits. Overall, general economic gains require “net” new jobs. Various proposals may well bring new jobs to a defined geographic area or benefit a specific industry. However, there may be job losses elsewhere, in other areas or other industries. Creating new jobs at the expense of old jobs does not move the overall economy forward.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA