Milton Friedman and the “Job Creation” FallacyDuring a visit to a canal construction project in Chin

Milton Friedman and the “Job Creation” FallacyDuring a visit to a canal construction project in China, Milton Friedman noticed that workers were digging with simple tools instead of using earthmoving machinery.He asked: “Why aren’t you using machines?”The answer was: “Because we want to create more jobs.”Friedman replied: “Then why not give each worker a spoon instead of a shovel?”The point wasn’t really about digging a canal.If the goal of an economy is to maximize the number of jobs rather than the amount of wealth produced, inefficiency can easily be disguised as “job creation.”More work doesn’t necessarily mean more production.@The_Economist_Telegram