gekaap
Rookie
- Jan 25, 2011
- 1,795
- 136
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- Banned
- #1
Both sides of the aisle have said they want to see job creation as a priority. But how much can they do at this point? Corporate profits have been on the up and up, yet job creation does not seem to be a priority for employers. And it makes sense to me. The last thing companies want to do is spend money. If they've managed to muddle by with a smaller workforce, what reason is there for them to now expand their workforce if they can keep it up? It seems to me that the current state of the economy is not a political issue. It's a social issue.
In an effort to maximize profits, any business will endeavor to maximize efficiency so that money is not wasted in operational costs, including labor costs. Businesses that find and successfully employ the good methods to maximize cost efficiency are rewarded with higher profit margins, as we all already know. But what happens to an economy and society if the means of production become too efficient? What if all the needs and demands of a society can be provided by employing only 80% of the population?
I am beginning to think that the current economic situation has more to do with this kind of phenomena than it does with anything else. How, then, should our society respond in order to maintain a stable economy that provides better for all people?
In an effort to maximize profits, any business will endeavor to maximize efficiency so that money is not wasted in operational costs, including labor costs. Businesses that find and successfully employ the good methods to maximize cost efficiency are rewarded with higher profit margins, as we all already know. But what happens to an economy and society if the means of production become too efficient? What if all the needs and demands of a society can be provided by employing only 80% of the population?
I am beginning to think that the current economic situation has more to do with this kind of phenomena than it does with anything else. How, then, should our society respond in order to maintain a stable economy that provides better for all people?