The Job-Creation Machine

One of the most enduring myths in British political life is that additional employment can be generated by increasing spending in the public sector. Argument takes place about how much of this activity can be done "safely," about the levels of inflation which are "acceptable" when it is done, and, above all, how much of it "should" be done by a compassionate and caring government. The debate seems to take place between those who urge that government should engage in higher spending to create jobs immediately, and those who claim that other priorities are more important. A situation can be arrived at in which a government which refuses to increase public spending finds itself accused of being hard-hearted and not caring about the plight of the unemployed.

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