Who Really Creates Jobs?

Monday, October 25, 2010

Another article by guest contributor John Hutchinson. If only our politicians in Washington had the sense of a hard-working businessman:

By now we are all tone-deaf to the politicians spouting how many jobs they each created. Closer to the truth is that IF they had created all the jobs for Americans they claim we would currently be exporting the surplus jobs to pay off the national debt. While we are exporting millions of jobs at the moment to places like Communist China we certainly are not benefiting from it!

I have not yet heard from the Left or the Right the correct answer to who creates jobs! We hear about huge wasteful government programs that creating jobs. This is a lie pure and simple. The truth is these make work programs COST jobs. The other side tells us that businesses create jobs. This is simply not true. I operate two businesses and I have never created a single job even though I have employed many
people over the years.

The truth is that politicians for the most part do not know who really creates jobs or they don’t want you to know. If they do not know it is right down scary considering the positions of power they hold. If they don’t want you to know than they are being deceitful and undeserving of the position they hold.

If the government doesn’t create jobs and businesses are unable to create jobs than who does?

YOU DO!

You the consumer creates jobs. No government, business, organization, group, bailout, handout or giveaway can create one single job. But you can! Simply by being a consumer and consuming. When you consume you create a demand for that product or service. Another individual or business then strives to satisfy your demand by providing the goods or services you demand to make a profit. A business owner has to hire employees to meet your demand for a product or service. The more consumers demand a product the more employees the business has to hire to meet the demand. And it all starts with YOU.

Each and every time you spend your income you create jobs. There is no way to spend your income and not create a job for another individual. That person employed by the company to meet the demand you created is paid for his or her labor and in turn creates employment for others when they in turn spend their income.

Let me provide an example of job creation that does not work. I dream up this great idea to open up a shoe factory to make a new type of shoe. I am going to make millions! There are 300,000,000 Americans out there and all I need is for a small percentage of them to buy my shoes and I will make a fortune. But I have no money to build the factory and operate it. So I go to the government for a stimulus loan to get things started. I ask for $10,000,000.00 to get my company off the ground and I get it. So I build the factory and hire shoe makers, office staff and sales people to operate my business. I am creating jobs. Right? We start making shoes! I order material from suppliers so I am helping my suppliers create even more jobs! Right? There is just one small problem. No one is buying my shoes! I have shoes stacked to
the ceiling! I also have a lot of bills piling up from suppliers for the material they provided and I have no money to pay them because no one is buying my shoes. I am going to have to lay all my employees off and file for bankruptcy if things do not improve fast. How could my business not succeed? I had the stimulus load from the government, I built a factory and made a lot of shoes yet I failed. Why?

There was one missing element. The consumer. You.

If there was a demand for the product the business would succeed. No amount of government handouts will create jobs. In the example above did the business really create jobs? Not really. In reality the government subsidized business actually cost jobs. All the people employed by the shoe factory will be out of work. Some of them would have left other jobs to move to what looked like a better job. Many of the suppliers will have to lay workers off because the shoe factory did not pay its bills and the suppliers have to cut back to stay in business.

Another huge factor is the $10,000,000.00 loan from the government. That money came from somewhere. It came from the tax payer’s, the consumers, YOU. The government took ten million dollars out of the pocket of consumers and wasted it on a job creation project that had little chance of success. When the government took that ten million dollars out of the pocket of the consumers they also destroyed thousands of jobs for the consumer no longer had that money to purchase products with.

Job creation is a NATURAL occurrence in a market economy. There is NOTHING a government can do to create a job without eliminating even more jobs from the economy. The only thing a government can do is eliminate jobs by removing money from the economy through taxation.

Nothing is more critical for our country at this very moment than for as many Americans as possible to understand this. The election only one week away will not only decide what party controls Congress but more importantly the very economical survival of our economy. The only correct action by Congress and the President is to reduce the tax burden on the country and allow the economy to work as it does naturally and freely.

America does not need politicians to create tax payer funded artificial jobs. The American consumer will do it as soon as government stops draining the money from the economy.

John S Hutchinson

John@krausservices.com

1 comments:

Anonymous said...

This reminds me of a few months back when Rahm Emanuel was out there begging for the rich to spend money. Doesn't work when at the same time the government threatens to tax those same people into oblivion. Understandably, people want to hold onto or hide their money even more when someone tries to take it away. People are unsure of the future and what the economy is going to hold for them.

Just this morning the fed was talking about putting hundreds of billions more into the economy to artificially drive down interest rates in hopes that people will start purchasing more. This hasn't worked over the entire last year that it's been tried because of course people are afraid to spend right now. Not to mention that artificially low interest rates are what got us into this financial mess in the first place!

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