Tuesday, July 17, 2012

It's All About Demand

This is the third in a series.
We left off with the real key to job creation.  Demand.  Remember your widget company and the tax cut you received "to create jobs"?  Well, in reality, the only time you are going to hire additional workers - AKA create jobs - is when you need to produce more product.  In your case that would be widgets.  The only time you are going to hire a new widget maker for your business is when DEMAND outpaces PRODUCTION.  Right?  And it can't be for, say, if demand goes up to 105 widget per week.  You can probably cover the extra 5 widgets with a little over-time.  This is still cheaper that hiring someone and having even that additional 5 extra widgets that you have to store every week.  

In fact, you could probably institute some new procedures that, with the extra over-time, will enable you to produce, oh, say, 115 widgets per week.  And it's really not taking much from your bottom line.  Just that little bit of OT.  The real fact of the matter is that you are just NOT going to hire a new widget maker until the demand for your widgets is high enough that you can no longer meet that demand with your current staff.  Then and ONLY then will you hire that new widget maker.


As a business man, hiring new staff is the LAST RESORT.  That's it!  Think about it.  Really think about it.  The "job creators" have had 10 years of tax cuts and I ask you, WHERE ARE THE JOBS?  If tax cuts create jobs we should have every American who wants a job employed today.
But we don't.


I don't know about you, but I just don't see the relationship.  Nope.  Just don't see it.


We, you and me, the American Middle Class, are the real job creators.  Cut OUR taxes.  Put more dollars in OUR pocket and we are going to spend it.  Most of us have to just to survive!  There's a reason why savings is at an all time low - but that's a topic for another day.


Face it.  The Republicans are just plain wrong about this.  They just will not not screw the 1% that is paying their way.  


If you don't believe me.  Check out this guy.

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