Who are the Job Creators?

[BigV]

The speaker in your video is right on target DanaC. Right on target. He's not the first to make such an observation, nor was I. Tax cuts do not create jobs. Demand creates jobs. Naturally, business being going concerns, have expenses and reducing expenses makes the going of such concerns smoother. Taxes are a kind of expense, reducing that expense, like reducing other expenses can improve the profitability of the business, but it can't create a job. Those that say so are just making up a story to justify their position of wanting the tax break. Business want profit, and that's ok. Wanting more profit is ok. Lying is not ok, making up shit is not ok. Deceiving people is not ok.

Originally Posted by BigV

]I do believe that the private sector has vastly more potential to reduce unemployment by hiring more people than the government does. Yes, it's true that the single largest employer is government, but it is dwarfed by the aggregate private sector. That private sector though is made up of many many individual employers. Those individual employers don't have the same motivations to hire that the government does. A private employer hires someone new when the demand for work exceeds their ability to do that work with the staff on hand.

Let me repeat that. Employers hire new people when they can't deliver all the work they have with the staff they have. It is demand driven. I heard a small business owner say it this way this morning: "I hire someone when I'm working 90 hours a week. That's when it's time to hire someone new." That makes total sense to me. A tax credit/benefit/break/doodad that slightly reduces the cost of a new employee (which can be high, one of the MAIN REASONS that an owner will work 89 hours a week before deciding to actually hire a new worker) has an effect, but it is marginal at best. Sadly, that's how things work between government and business. Government (which does have an explicit interest in reducing unemployment) wants more people working, but depends on business to hire those people can only use incentives and disincentives to guide, to urge, to encourage such behavior. But look back a couple sentences...a business hires primarily based on demand, not on minor reductions of the expense of hiring. The government's ability to effect and affect such actions is indirect at best. But they sure get all the heat for the lack of success of such actions.