HappySqurriel on 19 July 2011
The best way for the government to "create jobs" is to produce a business environment with low unnecessary overhead and low costs; and this is typically achieved by having a straightforward tax code and reasonable taxes, with a lightweight but effective regulation and low levels of crime and corruption. Beyond this there might be some role for the government in ensuring that the workforce is well educated, highly skilled and well motivated but this may be best handled by private institutions.
In other words, the government could create jobs by acting in the complete opposite way as it is acting today.
