Government Jobs and the Economy: What's the Real Story?
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Dr. Emrick's Books, Blogs, and Podcasts Ever wonder if more government jobs actually mean a stronger economy? It’s a fair question, especially when you hear folks cheer about rising government employment as if it’s a clear win for the country. But the truth isn’t so straightforward. Let me explain this fallacy in straightforward terms and see what is really going on. The economy’s health is often measured by something called Gross Domestic Product, or GDP. Think of GDP as a giant tally of everything we produce, goods like cars and services like haircuts, all added up by their market value. When someone gets a government job, their salary gets counted in that tally, which makes it look like the economy’s growing. But here’s the catch: most government work isn’t sold on the open market. Unlike a company making widgets, we don’t know its true value, so we just guess it’s worth whatever we pay the workers. That’s a bit like saying your savings are up because you spent more—it doesn’t...