Who Are the Job Creators?

We sometimes hear about job creation in the economy and typically this is referenced toward business owners. Jeff Bezos created X number of jobs with Amazon, or some new company will move to an area and create Y number of jobs. There is a sense where these entrepreneurs created jobs since their actions are bringing the jobs into being.

But there is another way to consider who creates jobs: to whom does the job benefit? A job exists in a market because it looks to fill a hole, to satisfy some end. My mechanic has a job because I need him to work on my car. My grocer has a job because I want her to feed me. My doctor has a job because I want her to give me medical advice. In this sense, the consumers are the job creators.

A productive job exists to serve some end that someone is willing to pay for. A job that does not serve some end ceases to exist. To the extent entrepreneurs are creating jobs, it is because they are seeking to satisfy some desire; the “demand” for the service has created the jobs.

Jon MurphyEconomic Thought