Job Creators

Posted on 11/04/2011. Filed under: Uncategorized | Tags: , , , , |

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.”

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Political Systems

Posted on 08/27/2011. Filed under: Uncategorized | Tags: , , |

The United States has a democratic form of government. There are many versions of citizen participant (democratic) governments around the globe. As far as I can tell, most governments based on democratic principles  are in a state of political turmoil much of the time. Certainly the United States Federal Government seems to be in a constant state of political party combat. Each party takes opposite poll positions which are the bedrock principles which any party member running for a high political office must adhere. The result is that there are a lot of hypocrites in public offce and a lot of conflict in the political process. Maybe the Untied States representative form of government  is more prone to this kind of conflict that some other forms of democratic government. This conflict is, for the most part, not directed to solving the nations problems, but rather towards gaining political advantage.  Winston Churchill is famously quoted as saying, “The democratic form of government is the worst there is except when compared with all others. ” Maybe  a conflict free democratic government is an oxymoron and I need to get used to it.

As I write this I am being distracted by a beautiful sunrise I can see through a window in my messy office/den. Beautiful reds and yellows appear through broken clouds; due I understand to wildfires burning in the south. A reminder that the earth moves in its own way regardless of the turmoil among its inhabitants and governments.

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Endless Growth

Posted on 06/25/2011. Filed under: Uncategorized | Tags: , , |

We hear it every day. “We must have growth for a prosperous economy.” Negative growth describes a recession, or worse, a depression. This rule applies to all of earths major economies regardless of the form of government in charge. For a nation to prosper it must turn out ever larger amount of goods and services, year on year.

This need for never ending growth gets brought up in the PushBack first chapter. Jim Reed, the lead protagonist in the book, is describing the current financial condition of the United States to his longtime girlfriend Linda Alonzo:

“The country is financed by foreigners; the trade deficit is through the roof, there entitlements coming due that we can’t afford. But not to worry−the president said in his last news conference that the economy is strong and is poised for a period of steady growth.”

“Why am I not surprised?” Linda replied. “That’s what presidents’ say, no matter what.”

Jim agreed. “But you know, as long as the economy keeps growing, it will eventually cure a lot of these problems.”

Linda wasn’t convinced. “There’s something about this constant growth thing that I don’t understand. How long can something like the economy keep growing like forever? How long can an obese person keep gaining weight?”

This excerpt brings up the question of how long the human race can continue to grow in numbers and the consumption of non- renewable resources needed to sustain economic growth before the limits of a finite earth are reached. It would seem that eventually an economic model needs to be developed that will not depend on growth to maintain an acceptable quality of life for all of the earth’s inhabitants.

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