Obama's job fetish: why the government shouldn't view "creating jobs" as an end in itself.

• Author: Sullum, Jacob
• Position: Barack Obama - Column

IF, AS WIDELY expected, Barack Obama faces a recession when he takes office in January, many Americans will expect him to deliver on his promise to "create jobs." They probably will be disappointed, because Obama seems to view job creation not only as something the government does with taxpayers' money but as an end in itself. That's a recipe for wasteful spending that will divert resources from more productive uses, and ultimately for higher unemployment than would otherwise occur.

Obama says he will "transform the challenge of global climate change into an opportunity to create 5 million new green jobs," which he likens to the economic activity triggered by the personal computer. This rosy way of looking at global warming is a variation on the "broken window" fallacy dissected by the classical liberal economist Frederic Bastiat, according to which the loss caused by smashing a window is offset by the employment it gives the glazier.

By the same logic, Obama should view war, crime, and hurricanes as opportunities to create jobs. While all three generate economic activity, we'd be better off if the resources spent on bombs, burglar alarms, and reconstruction work were available for other purposes, instead of being used to inflict, prevent, or recover from losses.

Likewise, overhauling manufacturing, transportation, and power production to reduce the emission of carbon dioxide may or may not be justified, but the cost of doing so is properly viewed as a drag on the economy, not a boost to it. At the risk of stating the obvious, we'd be better off if we didn't have to worry about, and use resources to minimize, climate change.

Obama wants to spend $150 billion on "developing and deploying advanced energy technologies, including solar, wind and clean coal." He says this plan "will reduce greenhouse gas emissions, decrease our dependence on foreign oil and create jobs that can't be outsourced."

Leaving aside the desirability of "energy independence" and the merits of Obama's approach to reducing carbon dioxide emissions (which has the government, rather than the market, picking the most efficient methods), the fact that he lists "jobs that can't be outsourced" as a distinct goal is troubling. Paying people to dig...