Wealthy individuals and businesses have been given a new title. They’re now “Job Creators.”
Businesses do create jobs; however they do not create jobs because it is good for the economy or for the country. They create jobs if it will add to the profitability of the business. Businesses employ people to produce products or services they market. Companies will invest money for facilities, to do research, and to obtain services needed to conduct the business which will create jobs. However, businesses will only make investments and hire people needed to maximize profits. Businesses invest where it will give the company the best return, the most profit. During the past decade many US manufacturing and financial businesses have invested large amounts of capital in China and India, and in the process have created many job opportunities for many citizens of those countries. Companies are doing what they are supposed to do, investing where there is the best opportunity to make a profit.
Wealthy individuals invest in US companies through stock or bond purchases which can cause jobs to be created in the US or in other countries. Investing in municipal bonds or other government bonds can help create jobs by providing money to improve infrastructure, hire public employees, etc. Wealthy individuals invest in real estate where development, maintaining, improving and exchanging real property creates jobs. However the wealthy do not invest in order to create jobs in the US, they invest in order to create more wealth.
It may take a long time for money invested by businesses and wealthy individuals to have an effect on the job market, and worse, the money may be kept safe and taken out of circulation when it is most needed. In stressful economic times, businesses and investors might be identified as “Job Terminators,” rather than “Job Creators.” In addition there is a strong possibility that businesses and wealthy individuals will use their money to create jobs outside of the United States where the investment possibilities and profits are greater.
Not included in the new “Job Creator” category are the ordinary people; the working poor and middle class class citizens. These people create jobs when they buy things that are necessary or that make life more enjoyable? This includes clothes, food, cars, houses, health services, maintenance services, child care, entertainment and tuition. All of these goods or services are provided by working people who in turn will quickly spend the money they received in creating and providing the goods and services for others. These ordinary people will put their money back into the economy before the next paycheck or payment for services, sometimes even before they have the money. Much of this money flows back into their communities that directly support local jobs. It shouldn’t take a lot of study to determine that the fastest and most dependable way to create jobs is to put money in the pockets of people who will immediately use it to buy necessities or to use it to make their lives more enjoyable. These are the real “Job Creators.”