Governments like Greece's create jobs by borrowing and fuelling crisis

The discussion about whether governments can create jobs and the advocacy of government stimulus in times of economic crisis beg the question: why cannot the governments of Greece, Spain, Portugal, Italy and the United States, amongst others, create the jobs that people say they can?

This question arises every few years when there is a downturn in the economic cycle.

There is no doubt about the dedication of the staff who work in, say, our public hospitals. The same services are available privately.

As taxpayers, we choose to fund public services. That is the choice we make as a society. The taxpayer provides the funds for those jobs; the government expedites the process.

The problem is that governments, like Greece's, have 'created' jobs by borrowing money. Unfortunately, they have to pay it back.

They do not have any money and are unable to borrow more, except at exorbitant rates of interest. They have had to reduce the number of employees, not increase them.

Unemployment in Greece is at 19.2 per cent and Spain's is at 22.5 per cent. Most job losses are coming in the government sector. This is hardly job creation.