Re:FDR's policies prolonged Depression by 7 years, UCLA econ...
by nl on Thursday December 19, 2013 @05:35AM
(#6933840)
You could employ people cutting tulips around the city hall, and technically they are employed, yes, but do not produce any value towards economical growth, so it's a net loss compared to them working in a productive job in the industry.
Except it's not a net loss, because those people now have money they can spend.
Well if you create artificial jobs, not deemed necessary by market needs, just for the purpose of stimulating the economy, that assumption can be seen as correct. It depends on your point of view. You could employ people cutting tulips around the city hall, and technically they are employed, yes, but do not produce any value towards economical growth, so it's a net loss compared to them working in a productive job in the industry.