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A job is a basic and essential economic tool. No economy will exist without it. It is an agreed upon exchange of values between two individuals or between and individual and an organization in which talent and time applied to specific tasks is exchanged for money.  That basic exchange gives rise in the individual to increased economic freedom, spiritual and psychological fulfillment, and general well being. The simple concept of "job" is a foundational element in a healthy community.  

To be clear, business creates jobs, not government. While government does provide jobs, its role as an employer is limited to jobs necessary to meet its responsibility for infrastructure development and provision of services to the public. 

The primary source of  job creation is business investment in expansion.  As profits are applied to the expansion of production capability, production resources -- land, facilities, equipment, infrastructure, technology, and workforce, ie. jobs -- must also expand. For example, manufacturers may choose to open a new plant while retailers may wish to expand into new markets -- actions that create new job opportunities.

Such an environment also encourages the development of small businesses and entrepreneurship. Small businesses adhere to the same principles and reinvest profits in expansion, while entrepreneurs are willing to risk their capital to establish new businesses.

As more businesses begin and established businesses grow, more jobs are created and tax revenues to government increase enabling reduction of debt and increase in infrastructure development to enhance the well-being of the community. 

 

Good government will proactively engage as a stage-setter, facilitator, and encourager to business development for the expansion of job opportunities. In other words, government does not "do" business. It fosters business activity. Good government, as a public entity, will invest in infrastructure and other initiatives to boost the economy's efficiency, leading to accelerated economic growth in private sector business -- and jobs.

There are certain actions that proactive good government can take to encourage job growth. Example are . . .

  • Investment in infrastructure: Government can create jobs by investing in infrastructure projects. For example, building new highways or bridges requires a large workforce and can create jobs for construction workers, engineers, and architects.

  • Provision of tax incentives: Government can incentivize businesses to create jobs by providing tax breaks and other incentives. For example, a business that hires a certain number of employees could receive a tax credit.

  • Support of small businesses: Small businesses are often the engine of job growth in the economy. Government can support small businesses by providing access to capital, training programs, and other resources that can help them grow and create jobs.

  • Encouraging innovation: innovation is often the key to creating new industries and jobs. Government can encourage innovation by investing in research and development and providing grants to startups that are developing new technologies.

 

In these efforts, good government, exercising its responsibility to protect the welfare of its citizens, will pay close attention to balancing a free market environment with preservation of fair opportunity for all business ventures. 

We pray for good government that wisely and proactively fosters job development.

Source: https://issuu.com/rovesa/docs/sa_business_integrator_final_-_april_2022/s/15283355; https://fastercapital.com/topics/the-role-of-government-in-job-creation.html

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