Public works

Among job creation is understood to state investments that are made especially in periods of mass unemployment to bring unemployed back to work ( temporarily or permanently ) and the economy to "crank ". Typical fields in which job creation was realized, construction activities were during the Great Depression in the transport sector (eg roads ), measures electrification in rural areas ( Tennessee Valley Authority ) and other investments in infrastructure. Job creation is generally regarded as the responsibility of government ( state or local ).

Job creation is controversial; their effectiveness is questionable.

In contrast, is meant by job creation scheme grant-aided activities.

History

Job creation has been requested in almost every modern economic crisis and partly carried out.

  • After a crisis of 1847-1848, the 1848 February Revolution, favored in Paris, the so-called national workshops ( ateliers nationaux ) were founded. ( However, this quickly suffered shipwreck, and its closure led to the June uprising ).
  • In Austria, the Semmering Railway was built as the first Alpine railway at the same time.
  • In the Great Depression of the 1930s, the government under Franklin D. Roosevelt met in New Deal for job creation on a large scale a ( creation of the Works Progress Administration, the Civilian Conservation Corps, etc). Some of the measures (for instance in terms of city beautification and environmental protection ( national parks) ) are evaluated up to now mostly positive; in addition, there were also massive criticism from conservative and liberal economic economists and politicians: job creation barely manage real values ​​would amount to a "Buy " of the voters, increase the interest rate by the State recourse to the capital market, etc.
  • In the UK, John Maynard Keynes put since the 1920s, one for action and did so in his influential masterpiece "The General Theory of Employment, Interest and Money " (1935 ).
  • In Germany and Austria, the economists and theorists of the Marxist left (Rudolf Hilferding and Otto Bauer) showed as well as those of the center ( Heinrich Brüning ) against claims of job creation rather skeptical and financial orthodoxy inclined.

Germany and Austria

Especially under the influence of trade unions there was at the left for a late rethink ( WTB Plan of Vladimir Woytinsky, Fritz Tarnow, Fritz Baade ), which had no consequences but. Germany was the most affected by the global economic crisis affected industrial state. The massive propaganda of political rights for job creation ( Gottfried Feder etc ) was instrumental in the doubling of votes and mandates of the NSDAP in the Reichstag elections of July 31, 1932. The government of Papen, known as " Franz_von_Papen # Chancellor ," was a minority government; she ruled with emergency decrees. She brought a modest job-creation program in transition; the unemployment figures came out in this time something back.

Soon after the "seizure of power " ( January 1933, a third of the working population was unemployed, industrial production capacity was underutilized almost half ) the Hitler government began job-creation programs. After four years of full employment was reached. The economic policies of the Third Reich was and is object of research by historians, economic historians and economists. There is a dispute about which AB projects were conceived in civilian purposes and which rather military.

The employment growth between 1933 and 1939 resulted primarily from massive rearmament and other preparations for a large-scale war of conquest ( Hitler spoke of ' rearmament of the German people '). Even if the highway construction was mainly military, economic and propaganda purposes is questionable. In addition, rivers and streams were straightened, Moore drained and much more.

Job creation has been discussed little more during the decades of reconstruction and the associated boom. After the first oil crisis (1973) and the second oil crisis (1979 - 1980) it has been discussed in many countries and partially practiced. In the 1970s and 1980s, some developed countries fell into a stagflation (for example, France and Japan ); also urged baby boomers into the labor market. Some ABM were intended to reduce or to provide school leavers work experience youth unemployment.

Other well-known projects of job creation:

Grossglockner High Alpine Road

Rehberge Park (Berlin)

High Road (Vienna)

Riverwalk (San Antonio ( Texas))

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