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Can the Government Create Jobs?

The leader of the National Party, Judith Collins made a speech in Lower Hutt yesterday during which she was reported as saying "No Government ever creates jobs ... You, the business owners and entrepreneurs of New Zealand, do that".


But is it true? The role of the government in job creation is part of a furious debate, particularly in the United States. At some level, it would seem absurd to argue that no government has ever created a job. For example, to the best of my knowledge, the three biggest employers in Auckland are the Auckland District Health Board, Auckland City Council and the University of Auckland. They all fall under the umbrella of "government".


To be fair to Judith Collins, my impression is that she would argue that the District Health Board, the Council and our Universities are all funded out of taxes and rates, which come from income and wealth created in the private sector, by business owners and entrepreneurs.


For the report on Judith Collins' speech, see:

https://www.newsroom.co.nz/nationals-plan-to-foster-new-business-post-covid