Quote:
Originally Posted by tw
Jobs were created when the rich were properly taxed. Jobs creation stopped when government gave welfare to the rich.
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Piggy-backing off this a bit...
So, in essence, if business owners wanted to be richer, they had to make more money. To make more money, they had to grow their business (or sell it at a profit and start another). To grow the business, they had to drum up/better meet demand and increase deliverables while minimizing receivables. To do all that, they need a workforce that will, for whatever reason (as far as they're concerned), come to work everyday and not waste company time/resources. Doing all of this takes time, money and energy. The motivation for doing all this would be the increased ROI. Increased ROI means the business owner gets richer.
If business owners are able to get more R for less I, they will. They definitely will because it's less expenditure. The extra R can come from lots of places, from savings realized by automating a process, from tax breaks, from outside investors being impressed by your latest product. Less expenditure means more money doesn't leave them/the business and they stay rich for longer or get rich sooner. There's no motivation to add more jobs because personal and business profit would be growing without it.
Also, adding more jobs when there isn't more work to be done means you get more work created (to justify paying more workers) and an increase of deliverables, which can mean an increase of receivables (which may or may not cost more money). Increased deliverables still need to be sold and if you saturate the market and the demand isn't there, you drive price down and that can backfire on you (and all your competitors). And they don't want that either. And since a black-inked balance sheet and a graph showing a steady upwards creep on the profit over time axes are the engine of a business, why change it?
And that's just the business side. The consumer side deals with the same situation, with just a slightly different flavor. Both need the other to prosper and when one side is favored the other will suffer. What is a boon to one will make the other go bust. Need balance.