18 May 2011

Jobs, Jobs, Jobs

Demand, Demand, Demand

Enterprises add jobs when business and consumer demand prove they will increase beyond current employees efficient capability to supply.

When uncertainties exist about demand, government regulation, economic stability, currency value, costs, disposable income, consumption, conflict, strife and combat; the lack of predictability discourages demand.

Weak demand, decreasing demand, artificial demand (subsidies), destroys jobs.

Artificial inefficiencies, like regulations and union rules are attempts to force added jobs for which there is no underlying true demand.  Real jobs are created only by real demand for goods and services.

Real economic activity is driven only by the expectation of business profit and therefore the capacity to pay employees. If there is no surplus revenue, there is no added payroll, there is no disposable income, and then there is no money to express real demand in the marketplace.

Taxation lowers disposable income. Unpredictable future taxes and regulations add to economic uncertainty. Excessive government spending decreases the value of existing wealth, erodes the value of currency, and increases the price of all goods and services.

Governments do not produce excess revenue (profit); they take it. They do not have disposable income. They create very little demand with their commodity spending. They earn a little interest on your money, but they mostly confiscate your money. Governments discourage and destroy many more jobs than they encourage. Governments cannot create or sustain any real jobs. They just pay people with money taken out of the economy.

Business don’t pay taxes, you do. All of their costs are passed on to those who purchase their goods and services. So all the taxes, regulations, and fees that are imposed upon them by governments must be recovered in the price of their product or service when you buy it, or they are out of business and their investors lose their money, the employees lose their paychecks, and the government loses its tax revenue.

If you want more jobs, and I think everyone should find a job, you must:

1. Eliminate business taxes.

2. Significantly reduce individual taxes.

3. Send large tax rebate checks to taxpayers.

4. Seriously reduce the size and scope of governments.

5. Dramatically decrease regulations and hidden fees and taxes.

These steps will allow true demand to be expressed in the marketplace, and if predictable enough and sustainable, real jobs will be created.

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