Business doesn't create jobs.

[Carol]

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ThomWV Donating Member (1000+ posts) Sun Aug-21-11 12:26 PM
Original message
Business doesn't create jobs.

I want to dispel a Republican Myth Here is my argument.

There is a Republican mantra that divines that business creates jobs and then goes on to suggest that low taxes are the only thing that will cause them to do so. They then misrepresent the chain of events that leads up to this miracle of economics. Their argument goes something like this. Lower taxes and the newfound funds will be used by business to hire in order to produce goods and services. When these goods and services come to market their mere presence will spur demand, now capable of being fulfilled by the newly hired workers. Were it to work that would indeed be a miracle of economics.

No, that is not how it works. Here is how the chain of events actually plays out:

When people have the money to buy their demand for products and services goes up. Companies wishing to take advantage of that demand must up production or increase their potential to render services and to do so they are forced to take on additional labor. It is money in the hands of people, not money in the hands of business, that creates jobs.

So the first order of business is to find a way to get disposable funds to the largest number of of people possible if one wants to increase employment.

And to the left, the best way of doing this for the government to take money from other people by force and giving it to other people.

Because of course, when a business gets tax breaks as incentive to hire people (who produce products and services) they do not earn money that gets put back into the economy, spurring demand which increases production.



How can they possibly believe stuff like this??

Angry Dragon Donating Member (1000+ posts) Sun Aug-21-11 12:31 PM
Response to Original message
1. There is a huge hole in your arguement

The people that you need to convince of this are the ones that have a huge hole in their brains.
They do not listen, they do not hear, they do not see and all they want to do is sit on their asses and tell everyone who will listen that they are doing the best they can.

rucky (1000+ posts) Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Sun Aug-21-11 12:55 PM
Response to Reply #1
9. They know very well that what the OP says is true.

it's the first thing they learn in Econ 101 - supply & demand.

Then they get their MBA and learn to work the system to defy the laws of supply and demand and focus on the more predatory tactics to get the most for the least - to create wealth without demand (or force demand through "public-private partnerships"), no matter how much money it costs them to set it up (paying lobbyists to pay off Congress critters), just to prove they can do it. And apparently it pays off, because in then end, they have full control over demand.

Cosmocat (1000+ posts) Sun Aug-21-11 12:38 PM
Response to Original message
4. profit ...

is the prime directive for any business venture. As noted, if there is a demand and the capital to do so, a business will create jobs to fill the demand if that is NECESSARY.

But, times have changed dramatically, and frankly, the productivity of the average worker has increased several times over.

It might have taken 4 or 5 people to do the books for a 10 million dollar business 15 years ago, but with the accounting software and computers we have now, it takes a book keeper and a financial officer.

Frankly, overall, today, businesses exist pretty much to KILL jobs more than make jobs. The bottom line is the bottom line, why have 5 people in the accounting department when you can have a book keeper and CFO?

eleny Donating Member (1000+ posts)
Sun Aug-21-11 12:49 PM
Response to Original message
8. That's why government is the one that has to step in and create the jobs

Repairing infrastructure is an area of government job creation. We all know there's a need for it. So these jobs would help both problems, the need for jobs and the need for repairs.

Republicans know this as does the corporate sector. But they both appear to want the Dems to fail so they can gain control of the nation.

So logical arguments fall on deaf ears. The corporations and the Republican Party are using racial tactics to wage their battle. Fear trumps logic in their book. So we need to stay sharp and fight the real tactics being used against us.

Elijah Cummings was on State of the Union today. He pointed out that in the black community in Baltimore the unemployment rate is 40%. The corporations and the Republicans don't give a crap. And they'd like it just fine if the president would join the ranks of those unemployed.

[aka:PBS]

Now I may not be the smartest tater in the sack,but even I know that is so messed up. They just think that the government can just keep on printing money without any consequences. There thinking is that the government will provide and protect them.

[Dan D. Doty]

Moonbats look for answers that make them feel good ; doesn't matter if they don't work, or even if they're destructive.

First, they think the Government creates jobs ( even when the WH tells the Moonbats they don't and they in turn disbelieve the WH).

Second, they hate Capitalism and love Socialism ( they deny both of these, but still post how hate Capitalism and love Socialism )

Third, they want to punish success and get rid off Indivualism ( they can only deal with people in groups .. and poor, demoralized groups at that).

And lastly, they view themselves as " The Elite" and you as the stupid brain-dead mondane who needs them to run your life; because you're not as " Enlightened " as them, you poor, dumb bastard.

But we do something that pisses them to end; we tell the lot of them to " Get f*ck of my life, asswipe!!! Try fixing your own screwed up existence for a change!!!

Just a little something from your Uncle Danny :D

[michaelsean]

So who do all non-governmental workers work for if not businesses? In the OPs argument about how businesses don't create jobs he comes right out and shows that businesses create jobs.

[FDK]

Dummienomics 101: Businesses exist to provide jobs.