Consumers Don’t “Create Jobs”

Consumers Don’t “Create Jobs”: Reisman vs. Blodget  (blog.mises.org)
- Highlight Loc. 20-23  | Added on Thursday, December 15, 2011, 04:31 AM

More consumer spending financed by inflation, i.e., the creation of new and additional money, has the potential for increasing employment in some circumstances, but only insofar as the sellers of the consumers’ goods that are faced with the additional spending save and invest their additional sales proceeds. If they too consumed, or if the government taxed away their additional sales proceeds, there would be no increase in the spending for labor or capital goods and no increase in employment.