John Taylor Shows The Importance Of Investment For Job Creation

See Higher Investment Best Way to Reduce Unemployment, Recent Experience Shows. He presents graphs that show government spending as a percentage of GDP having little relation to the unemployment rate and investment having a very strong relationship. The higher investment is as a percentage of GDP, the lower the unemployment rate. Taylor concludes with

"Encouraging the creation and expansion of businesses should be the focus on government efforts to reduce unemployment. The recent compromise agreement to prevent the increase in tax rates on small businesses and the move to lighten up on the anti-business sentiment coming out of Washington are two steps in the right direction."