Wahbooz
Governor
A great letter to the Freep, in regards to jobs creation. I'll withhold the name, but you can see the name and residence at the link.
Want to create jobs? Start with demand
A recent letter claimed companies, not politicians, create job. In fact, neither create jobs.
If I’m a carmaker, the pounds of steel and hours of labor I buy are determined not in the boardroom but in the showroom by the number of customers willing and able to buy my cars. The key word is able. Jobs can move from place to place by customer choices and economic choices that politicians can influence with tax rates and breaks, but the net number of jobs depends on the net purchasing power of the consumers who need and want cars. When money is directed to the investment class, as it is by our present tax system, it goes into commodity speculation, not additional goods.
It’s time to expose the big lie of trickle-down economics that business is the job creator. Supply without demand is bankruptcy. When tax breaks for business come at the expense of the consuming middle class, you are bypassing economic activity to give business its profit from would-be consumers without having to provide goods and services to earn them from those consumers. That’s why consumers have less today while corporate profits are setting records.
http://www.freep.com/story/opinion/readers/2016/05/06/want-create-jobs-start-demand/84037936/
He's absolutely right. If you want a strong, vibrant economy, you need a buying market that can afford to buy products. Henry Ford knew this, when he offered $5 a day to work at Ford Motor Company. And it made him richer than had he only been selling to the wealthy.
Corporations do not create jobs, tax cuts do not create jobs. Demand does.
Want to create jobs? Start with demand
A recent letter claimed companies, not politicians, create job. In fact, neither create jobs.
If I’m a carmaker, the pounds of steel and hours of labor I buy are determined not in the boardroom but in the showroom by the number of customers willing and able to buy my cars. The key word is able. Jobs can move from place to place by customer choices and economic choices that politicians can influence with tax rates and breaks, but the net number of jobs depends on the net purchasing power of the consumers who need and want cars. When money is directed to the investment class, as it is by our present tax system, it goes into commodity speculation, not additional goods.
It’s time to expose the big lie of trickle-down economics that business is the job creator. Supply without demand is bankruptcy. When tax breaks for business come at the expense of the consuming middle class, you are bypassing economic activity to give business its profit from would-be consumers without having to provide goods and services to earn them from those consumers. That’s why consumers have less today while corporate profits are setting records.
http://www.freep.com/story/opinion/readers/2016/05/06/want-create-jobs-start-demand/84037936/
He's absolutely right. If you want a strong, vibrant economy, you need a buying market that can afford to buy products. Henry Ford knew this, when he offered $5 a day to work at Ford Motor Company. And it made him richer than had he only been selling to the wealthy.
Corporations do not create jobs, tax cuts do not create jobs. Demand does.