The fallacy of Wealth Distribution without Wealth Creation

Nobody can create jobs. Nobody. Not an entrepreneur, not any government. If they do, soon they would be left with no jobs, and even the Capital would be gone. A business can have only one aim: to meet demand. It may be a demand because of demand-supply mismatch, or a cheaper supply than existing, or hitherto unaddressed need, or a brand new demand created by the entrepreneur himself.

Jobs happen as a result of this endeavour of the entrepreneur to supply the needs of his fellow men.

Of course, it is a tragedy of mankind that Gods never cease to appear at a constant frequency. Gods who claim that they can control the economy and force it to give the result they deem most desirable, for example, jobs. Only to end up destroying even what they began with. But Gods continue to come, and we continue to fall for them.

An entity/programme that claims to generate jobs is either a fraud or a charity, not a business. A fraud like MNREGA may continue to give jobs endlessly, without showing anything done by “employed.” A charity may continue to give jobs to those who work in it. But both, the fraud and the charity, need a continuous supply of money. And that which doesn’t earn its cost but needs pumping of money into it is not a business. As I said, it is either a fraud or a charity. It is sucking money from somewhere, killing jobs there, many times more than it is providing.