What apply's Diminishing Marginal Returns to Public State Enterprises (PSE's)? Why does Diminishing Marginal Returns limit the Governments ability to use PSE's to provide employment if the enterprise must be profitable?

Would the same limitations apply if the job is not in market enterprise, but is a 'public service' job in the government itself (eg. a Bureau)? Think carefully.

What lessons for the USA can be made out of this? Whatdoes create jobs?