In the 1960s, Milton Friedman reportedly visited a construction site in a foreign country. To his surprise, the canal builders used no heavy machinery and instead armed thousands of men with shovels. He questioned the bureaucrat about this odd choice and the bureaucrat responded that it was a jobs program. “Oh, I thought you were trying to build a canal,” Friedman said. “If it’s jobs you want, then you should give these workers spoons, not shovels.” Friedman’s absurd proposal illustrates the absurdity of make-work bias—the belief that conserving labor makes us poorer. Make-work bias was particularly popular during the Industrial Revolution, when legions...