Monday, October 10, 2011

From Jack (Job Creators)


by Jack Reeves

Mom and pop businesses, including major corporations, are not job creators. It could be called a myth: an unproved or false collective belief used to justify a social interest. Befitting today, the popular pontification is a scam for political purposes.

Imagine that you own a business, say, a souvenir shop. It could just as well be Sears or Home Depot.

All businesses in capitalist societies create income by offering goods or services. The number of employees (jobs) directly corresponds to sales. Sales depends on demand; demand depends on customer need and sufficient income, and the willingness to expend it, to purchase goods or services.

Consequently, businesses--regardless of their capital--do not "create jobs" unless there is demand for their offerings.

Conclusion: Consumers do.

The cynical, politically motivate deception of job-creators being businesses is not only a lie but a "damn lie" (Mark Twain).

Consumers are the job creators. Think about it, please.


Stickup Artist said...

A good point. There is always more to social situations than meets the eye and a simplistic talking point. Truth is, we are all interconnected and intertwined. No one does it alone (builds a business, amasses great wealth), no matter how much they insist otherwise. We all participate and contribute. When less participate, the worse off we will all be...

mythopolis said...

We have allowed the production of goods to be out-sourced to foreign countries, the demand for those goods is still good, but, in buying them, we support this practice of putting our own labor force out of work, sending money for manufacturing costs to others abroad. State side-profit on such goods goes mostly to the elite who oversee and steer these enterprises. Tickle down is minimal unless you are into landscaping mansions of the rich, or the construction of their pleasure boats, etc. Manugacturing needs incentive or motivation to bring the work back home. They think only of their own profit margins. If they can produce it cheaper elsewhere and still sell it here for a comparatively outrageous price, that's what they will do. Consumers can choose to boycott goods made overseas, but it is not as easy as one might think. Even if you drive an American brand auto, most of its parts were made in other countries. The Jeep, practically an icon of American vehicles ceased to be a vehicle made entirely in our country as long ago as 1979....etc....etc...