Dupuy: U.S. government does create jobs

Did you know the government can't create jobs? Nearly two years ago on CNN, former Republican National Committee chairman Michael Steele said, "Not in the history of mankind has the government ever created jobs." And then, "Trust me."

When Steele said those words, he was widely panned. It was dismissed on the right as a gaffe and debunked on the left as grossly inaccurate.

It was laughable - when Steele said it.

Cut to: "Meet the Press" last Sunday. CNBC's "Squawk on the Street" host Erin Burnett said, "Government can't create jobs." It was left unchallenged by any of the other panelists and host David Gregory.

Karen Hughes, who worked in the Bush administration (her government j-o-b) added, "Well ... the president seems to have had a revelation that it's actually business that creates jobs."

Then to top it all off, Democratic Congressman James Clyburn agreed. "No, we can't create jobs, and we shouldn't. We want them created in the private sector."

Almost 17 percent of Americans are employed by the government, about 22 million of the 135 million payroll jobs. And they're not just pencil-pushing, useless, cushy-benefit collectors - but scientists. There are no private-sector astronauts. None. Firefighters are government employees, as are police. "More cops on the streets" means more government-trained and government-compensated people in your community. The district attorneys, judges and bailiffs draw a government paycheck. The government? Law and order.

The second-largest employer in the country is the United States Postal Service. Try telling the lady raising her family by delivering your overdue notices that the government can't create jobs.

According to the Department of Labor, the private sector has been steadily adding jobs and the public sector has been cutting jobs at the fastest rate in 30 years. Especially local government jobs - teachers, sanitation workers and librarians.

So the government does, in fact, create jobs. It also slashes them. Cities and states have be