Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Jobs Versus Net Jobs (Thomas Sowell)
Creators Syndicate ^ | July 10, 2012 | Thomas Sowell

Posted on 07/09/2012 9:45:57 AM PDT by jazusamo

One of the reasons for the popularity of political rhetoric is that everybody can be right, in terms of their own rhetoric, no matter how much the rhetoric of one side contradicts the rhetoric of the other side.

President Obama constantly repeats how many millions of jobs have been created during his administration, while his critics constantly repeat how many millions of jobs have been lost during his administration. How can both of them be right — or, at least, how can they both get away with what they are saying?

There are jobs and there are net jobs. This is true not only today but has been true in years past.

Back during the 1980s, when there were huge losses of jobs in the steel industry, the government restricted the importation of foreign steel. It has been estimated that this saved 5,000 jobs in the American steel industry.

But of course restriction of competition from lower-priced imported steel made steel more expensive to American producers of products containing steel. Therefore the price of these products rose, making them less in demand at these higher prices, causing losses of sales at home and in the world market.

The bottom line is that, while 5,000 jobs were saved in the American steel industry, 26,000 jobs were lost in American industries that produced products made of steel. On net balance, the country lost jobs by restricting the importation of steel.

None of this was peculiar to the steel industry. Restrictions on the importation of sugar are estimated to have cost three times as many jobs in the confection industry as they saved in the sugar industry. The artificially high price of sugar in the United States led some American producers of confections to relocate to Mexico and Canada, where the price of...

(Excerpt) Read more at creators.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; Government
KEYWORDS: imports; jobs; jobsreport; obama; sowell; thomassowell

1 posted on 07/09/2012 9:46:04 AM PDT by jazusamo
[ Post Reply | Private Reply | View Replies]

To: abigail2; Amalie; American Quilter; arthurus; awelliott; Bahbah; bamahead; Battle Axe; ...
*PING*
Thomas Sowell

Photobucket - Video and Image Hosting

Recent column
All-Time All-Stars: Part II
All-Time All-Stars
Teaching Economics

Please FReepmail me if you would like to be added to or removed from the Thomas Sowell ping list…

2 posted on 07/09/2012 9:49:53 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jazusamo

Sowell needs to enter the no-spin cycle and go shopping. Just about everything what was made here is now made elsewhere. That’s how you figure out net jobs.


3 posted on 07/09/2012 9:56:26 AM PDT by ex-snook (without forgivness there is no Christianity)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jazusamo

Thanks for the ping to another excellent column by Dr Sowell


4 posted on 07/09/2012 9:58:10 AM PDT by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
[ Post Reply | Private Reply | To 2 | View Replies]

To: jazusamo
The bottom line is that, while 5,000 jobs were saved in the American steel industry, 26,000 jobs were lost in American industries that produced products made of steel. On net balance, the country lost jobs by restricting the importation of steel.

I see Dr. Sowell is still fighting unfairly by using facts!

Nothing will drive a libtard more batsh*t crazy.

5 posted on 07/09/2012 10:15:06 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Vigilanteman

heh, heh, heh

Well said, he does it consistently. :-)


6 posted on 07/09/2012 10:19:12 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
[ Post Reply | Private Reply | To 5 | View Replies]

Please bump the Freepathon or click above and donate or become a monthly donor!

7 posted on 07/09/2012 10:20:21 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
[ Post Reply | Private Reply | To 6 | View Replies]

To: jazusamo

Sowell is pure genius. I love the favorite quotes page from his website.

http://www.tsowell.com/quotes.html

Of all tyrannies, a tyranny sincerely exercised for the good of its victims may be the most oppressive. It would be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end for they do so with the approval of their own conscience.

— C. S. Lewis


8 posted on 07/09/2012 10:21:42 AM PDT by MarineBrat (Better dead than red!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jazusamo
This is patently obvious to even the most casual of observers. It makes me want to put my foot into the TV or monitor every time I hear one of these Demon politician apologists parrot this stupid line: "We created 7.5 million new jobs in the past 28 months."

1) If "you" created a job, it was a government drone hired to come and eat out my substance. You'll excuse me if I don't do a happy dance for the drones.
2) That number isn't balanced against the millions of jobs lost that are never coming back. Manufacturing where employers have adjusted to the new normal of fewer workers comes to mind. There are more.

That is, in technical terms, a huge "net loss" of millions of good jobs people used to have. I'm not even going to get into the minutia of the relative quality of the jobs lost vs. the jobs gained.

9 posted on 07/09/2012 10:28:03 AM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: jazusamo

Quick baseball analogy I thought of after I hit “Post.”

If the Diamondbacks and the Dodgers played last night, and the morning radio announcer said my team got seven runs, I’d be pretty happy if I did not hear about the nine runs the other team got.


10 posted on 07/09/2012 10:32:23 AM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jazusamo

Thanks for the ping to another excellent informative article by Dr. Sowell jaz. Appreciate it.


11 posted on 07/09/2012 10:32:58 AM PDT by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Cyber Liberty
Good analogy and leaving out the other score is exactly what Obama and Rats are and have been doing.
12 posted on 07/09/2012 10:41:36 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
[ Post Reply | Private Reply | To 10 | View Replies]

To: jazusamo
The bottom line is that, while 5,000 jobs were saved in the American steel industry, 26,000 jobs were lost in American industries that produced products made of steel. On net balance, the country lost jobs by restricting the importation of steel.

But the 5,000 steel industry jobs saved were more likely to be union jobs, so from the Dems perspective it was all good.

13 posted on 07/09/2012 10:49:57 AM PDT by PapaBear3625 (If I can't be persuasive, I at least hope to be fun.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Cyber Liberty

3) The high-wage job lost replaced by the minimum wage-paying job. A net of zero but hardly a loss you can make up with volume!


14 posted on 07/09/2012 10:58:57 AM PDT by NonValueAdded (Steyn: "One can argue about whose fault it is, but not ... whose responsibility it is: it's his")
[ Post Reply | Private Reply | To 9 | View Replies]

To: jazusamo
For more depth on the steel industry example, see Walter E Williams' piece, Economic Stupidity
15 posted on 07/09/2012 11:04:58 AM PDT by NonValueAdded (Steyn: "One can argue about whose fault it is, but not ... whose responsibility it is: it's his")
[ Post Reply | Private Reply | To 1 | View Replies]

To: NonValueAdded

Thanks...Excellent piece by Dr. Williams.


16 posted on 07/09/2012 11:15:35 AM PDT by jazusamo ("Intellect is not wisdom" -- Thomas Sowell)
[ Post Reply | Private Reply | To 15 | View Replies]

To: jazusamo
Rarely does one find a thoughtful discussion of the relationships between macro theory and micro theory, e.g. Theory of Relativity and Quantum Mechanics, and I’ve never read one unifying macro economics and micro economics, a non-science.

Sowell’s note “Jobs Versus Net Jobs” is excellent and worth reading by all who question how government can create jobs.

17 posted on 07/09/2012 11:30:13 AM PDT by jody2 (Legislature veto governor's bills)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jody2

Bookmark


18 posted on 07/09/2012 12:36:04 PM PDT by publius911 (Formerly Publius 6961, formerly jennsdad)
[ Post Reply | Private Reply | To 17 | View Replies]

To: ex-snook
Sowell needs to enter the no-spin cycle and go shopping. Just about everything what was made here is now made elsewhere. That’s how you figure out net jobs.

First of all, Dr. Sowell is probably the least practiced spinmeister of all time. He is clear and thorough with his observations.

Secondly, I take from your comment that you are against free trade? That is a flawed position my FRiend. Free trade is a good thing, even if "just about everything what was made here is now made elsewhere". Don't fall into the trap that Dr. Sowell is describing where you only look at one half of the equation.

19 posted on 07/09/2012 2:05:41 PM PDT by r-q-tek86 ("It doesn't matter how smart you are if you don't stop and think" - Dr. Sowell)
[ Post Reply | Private Reply | To 3 | View Replies]

To: r-q-tek86
"Secondly, I take from your comment that you are against free trade? That is a flawed position my FRiend"

Thanks for reply. I disagree with any trade agreement other than we buy product from you and you buy product from us.

What is now called 'free trade' are agreements between governments where we agree to buy items from other countries and pay for them with jobs, factories and Treasuries. I see this as faulty.

I see this as successful model for corporate balance sheets but unsuccessful for the nation's balance sheet. The unemployed citizens, removed from the business ledger, are transferred to the government ledgers. This is costly for the nation.

People needs to have productive work making things, buying things and paying taxes. This needs to be worked out because the alternative of living on foreign labor rates and environmental conditions will cause massive political ramifications hardly a desirable outcome for cheaper goods. Regards,

20 posted on 07/09/2012 2:37:14 PM PDT by ex-snook (without forgivness there is no Christianity)
[ Post Reply | Private Reply | To 19 | View Replies]

To: jazusamo
Thanks for the Ping.

"What has been the net effect? During this administration, the proportion of the working age population that has a job has fallen to the lowest level in decades."

That's what I was thinking as I listened to "Obama" spinning "jobs created" numbers in Ohio recently.

21 posted on 07/09/2012 4:20:55 PM PDT by Flotsam_Jetsome (If America were a car, the "Check President" light would be on.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: prairiebreeze

marker


22 posted on 07/09/2012 7:25:04 PM PDT by prairiebreeze (Don't be afraid to see what you see. -- Ronald Reagan)
[ Post Reply | Private Reply | To 1 | View Replies]

To: jazusamo
"...the cost of creating a job in the private sector."

Ideally/Theoretically, shouldn't that cost be negative?

23 posted on 07/09/2012 7:36:21 PM PDT by Paladin2
[ Post Reply | Private Reply | To 1 | View Replies]

To: jazusamo

>> The bottom line is that, while 5,000 jobs were saved in the American steel industry, 26,000 jobs were lost in American industries that produced products made of steel. On net balance, the country lost jobs by restricting the importation of steel.

True, but such job and economic loss is generally a consequence of manipulating competition regardless of how the results are achieved.

I’m not deeply in favor of imports, but neither do I care for the entitlement nature of big labor threatened by World competition.


24 posted on 07/09/2012 10:17:09 PM PDT by Gene Eric (Demoralization is a weapon of the enemy. Don't get it, don't spread it!)
[ Post Reply | Private Reply | To 2 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson