Reply #35: Unemployment was created to soften the effect of the business cycle

[dkf]

So that there would be a minimum amount of consumption even during times of economic stress. But governments can't support it in perpetuity and that is why they don't do it. You need a certain amount of the population doing work that produces goods and services. I mean if giving people unemployment or a government job created an economy then you could do it in every third world country and bingo instant nation building.

But if you want a country to be able to produce goods that other people buy that is a harder proposition. You think the chinese are excelling bacause they have given everyone unemployment or a government job? Nope. They create goods other countries want.