Why jobs are not being created?

[Vast LWC]

That is, unless Americans start working for 40 cents an hour.

the target wage is currently about $4/hr with no benefits. It costs to ship things from China to here.

Indeed.

 

[uscitizen]

They will however expect a college degree for the $4/hr wage.

 

[Avorysuds]

Eight percent unemployment means 92% full employment and all things considered, that's not half bad.

First of all UE is not 8%, it's much higher. Secondly under employment, stagnation of wages and lower wages is a huge issue as well. There is very little to nothing good about Obama's economy. Obama is trying to run the economy JUST like Bush, over stimulating and searching for the next bubble to prop up.

The Bush economy had far better employment but that was due to a HUGE housing bubble. When I say huge I mean freaking massive huge, it was not just another bubble. Mali vestment was at an all time high through Government spending, and Obama managed to outpace Bush's bad spending habits.

If 8% UE is not bad then Bush was one of the better presidents in US history.

 

[Mr Natural]

Get rid of those damn minimum wage laws and we'd have jobs out the ying yang.

 

[Avorysuds]

They will however expect a college degree for the $4/hr wage.

It's very easy to fix that issue.

 

[Mr Natural]

They will however expect a college degree for the $4/hr wage.

Well, yeah. You think they want to hire a bunch of losers for their 4 bucks an hour?

 

[signelect]

I don't hav e a link but the people I talk to are scared. Washington is out of control, Obama provides no or poor leadership. Congress is fighting to make sure the lobbyist are taken care of and the tax payer in the private sector suffer. gov't assistance payment are up. We just plain can't afford it.

 

[Wiseacre]

Jobs are created when new busnesses are created or existing ones are expanded. So, how do we make that happen? Businessmen, entrepeneurs, investors, all of them have to believe that risking their time and money will be worth the risk. And as we all know, that means sufficient demand at a price that exceeds costs that yields enough profit. That is why demand is not enough; if the price is too high due to the costs of production then more demand will not create many new jobs, if any at all.

That is why many believe the supply side of the equation must also be addressed. Lowering costs to arrive at a lower price that is profitable enough can create it's own demand. You know what happens when something goes on sale and the price is reduced? People buy more of it, and demand is increased.

So - there you are. You want more jobs, try supply side economics. One thing is for sure, stimulus/demand hasn't worked too well lately.

 

[Vidi]

The reason is Uncertainty.

The uncertainty has been created by our current administration.

It is up to you to find the uncertainties or prove they do not exist.

Please provide a reliable source, no blogs or political web sites.

Good Luck

Youre wrong.

Jobs ARE being created.

They just arent being created in America.



Ive noticed something on this forum. People seem to think that the American economy is a closed system. Its not. Its open. Its part of the GLOBAL economy.

So keep giving money to the "job creators" and they will do just that...create jobs. Unfortunately, they arent going to create them in the US. No amount of tax breaks is going to offset the 10 cents an hour worker vs the 20 dollar an hour worker.

And as long as we keep appying closed system principles to an open system, we will continue to get less than desirable results.

 

[Vidi]

Jobs are created when new busnesses are created or existing ones are expanded. So, how do we make that happen? Businessmen, entrepeneurs, investors, all of them have to believe that risking their time and money will be worth the risk. And as we all know, that means sufficient demand at a price that exceeds costs that yields enough profit. That is why demand is not enough; if the price is too high due to the costs of production then more demand will not create many new jobs, if any at all.

That is why many believe the supply side of the equation must also be addressed. Lowering costs to arrive at a lower price that is profitable enough can create it's own demand. You know what happens when something goes on sale and the price is reduced? People buy more of it, and demand is increased.

So - there you are. You want more jobs, try supply side economics. One thing is for sure, stimulus/demand hasn't worked too well lately.

Supply does NOT create demand.

One of the pillars of Lean Manufacturing is keeping inventories LOW. You create product ONLY when its needed and not before. Creating supply without specific demand is WASTE and thus does not add value to the product. This is a fundamental pronciple that has been guiding our manufacturing base for the last twenty or more years.

I have a customer that orders about 5000 parts every six months. I do not manufacture those parts until the next order comes in. Storing the parts takes up space and costs me money. I only manufacture what is ordered. Or another example...go to a company with a really great idea for a product. If they dont see a demand for it, it doesnt get manufactured. they diont make something saying if we price it cheap enough people will buy it.

DEMAND creates SUPPLY.

 

[Wiseacre]

Jobs are created when new busnesses are created or existing ones are expanded. So, how do we make that happen? Businessmen, entrepeneurs, investors, all of them have to believe that risking their time and money will be worth the risk. And as we all know, that means sufficient demand at a price that exceeds costs that yields enough profit. That is why demand is not enough; if the price is too high due to the costs of production then more demand will not create many new jobs, if any at all.

That is why many believe the supply side of the equation must also be addressed. Lowering costs to arrive at a lower price that is profitable enough can create it's own demand. You know what happens when something goes on sale and the price is reduced? People buy more of it, and demand is increased.

So - there you are. You want more jobs, try supply side economics. One thing is for sure, stimulus/demand hasn't worked too well lately.

Supply does NOT create demand.

One of the pillars of Lean Manufacturing is keeping inventories LOW. You create product ONLY when its needed and not before. Creating supply without specific demand is WASTE and thus does not add value to the product. This is a fundamental pronciple that has been guiding our manufacturing base for the last twenty or more years.

I have a customer that orders about 5000 parts every six months. I do not manufacture those parts until the next order comes in. Storing the parts takes up space and costs me money. I only manufacture what is ordered. Or another example...go to a company with a really great idea for a product. If they dont see a demand for it, it doesnt get manufactured. they diont make something saying if we price it cheap enough people will buy it.

DEMAND creates SUPPLY.

" If they don't see a demand for it, it doesn't get manufactured."

But the perceived demand is based on the price they'll have to charge to make a reasonable profit. The higher the price has to be, the less demand you can expect.


" they dont make something saying if we price it cheap enough people will buy it. "

I guarantee you they will say if we can't make this cheap enough, people won't buy it. That is why the supply side cannot be ignored.

 

[Vidi]

Jobs are created when new busnesses are created or existing ones are expanded. So, how do we make that happen? Businessmen, entrepeneurs, investors, all of them have to believe that risking their time and money will be worth the risk. And as we all know, that means sufficient demand at a price that exceeds costs that yields enough profit. That is why demand is not enough; if the price is too high due to the costs of production then more demand will not create many new jobs, if any at all.

That is why many believe the supply side of the equation must also be addressed. Lowering costs to arrive at a lower price that is profitable enough can create it's own demand. You know what happens when something goes on sale and the price is reduced? People buy more of it, and demand is increased.

So - there you are. You want more jobs, try supply side economics. One thing is for sure, stimulus/demand hasn't worked too well lately.

Supply does NOT create demand.

One of the pillars of Lean Manufacturing is keeping inventories LOW. You create product ONLY when its needed and not before. Creating supply without specific demand is WASTE and thus does not add value to the product. This is a fundamental pronciple that has been guiding our manufacturing base for the last twenty or more years.

I have a customer that orders about 5000 parts every six months. I do not manufacture those parts until the next order comes in. Storing the parts takes up space and costs me money. I only manufacture what is ordered. Or another example...go to a company with a really great idea for a product. If they dont see a demand for it, it doesnt get manufactured. they diont make something saying if we price it cheap enough people will buy it.

DEMAND creates SUPPLY.

" If they don't see a demand for it, it doesn't get manufactured."

But the perceived demand is based on the price they'll have to charge to make a reasonable profit. The higher the price has to be, the less demand you can expect.
" they dont make something saying if we price it cheap enough people will buy it. "

I guarantee you they will say if we can't make this cheap enough, people won't buy it. That is why the supply side cannot be ignored.

No.

A pile of XXXX is a pile of XXXX even at bargain basement prices. No one is demanding piles of XXXX.



And supply side economics ( giving money to job creators to create jobs ) can work but not give the dersired result. It will ONLY work in a closed system. The closed system is now GLOBAL not national. Therefore, giving tax breaks WILL create jobs, but those jobs will be in Singapore, or Guatamala.

Supply Side economics is obsolete.

 

[uscitizen]

Another factor this latest generation has pretty much drained off all the savings of their parents.

 

[uscitizen]

A pile of XXXX is a pile of XXXX even at bargain basement prices. No one is demanding piles of XXXX.

What about our 2 presidential candidates?

 

[Wiseacre]

Supply does NOT create demand.

One of the pillars of Lean Manufacturing is keeping inventories LOW. You create product ONLY when its needed and not before. Creating supply without specific demand is WASTE and thus does not add value to the product. This is a fundamental pronciple that has been guiding our manufacturing base for the last twenty or more years.

I have a customer that orders about 5000 parts every six months. I do not manufacture those parts until the next order comes in. Storing the parts takes up space and costs me money. I only manufacture what is ordered. Or another example...go to a company with a really great idea for a product. If they dont see a demand for it, it doesnt get manufactured. they diont make something saying if we price it cheap enough people will buy it.

DEMAND creates SUPPLY.

" If they don't see a demand for it, it doesn't get manufactured."

But the perceived demand is based on the price they'll have to charge to make a reasonable profit. The higher the price has to be, the less demand you can expect.
" they dont make something saying if we price it cheap enough people will buy it. "

I guarantee you they will say if we can't make this cheap enough, people won't buy it. That is why the supply side cannot be ignored.

No.

A pile of XXXX is a pile of XXXX even at bargain basement prices. No one is demanding piles of XXXX.

???? The quality of the product or service is also part of the supply side, and influences the price if it does not provide enough value for the money. Even a high quality product will not sell if it is priced too high.

And supply side economics ( giving money to job creators to create jobs ) can work but not give the dersired result. It will ONLY work in a closed system. The closed system is now GLOBAL not national. Therefore, giving tax breaks WILL create jobs, but those jobs will be in Singapore, or Guatamala.

Supply Side economics is obsolete.

Supply side economics does not mean giving money to anybody. It's about creating an environment where business can flourish, doesn't have to be subsidies and tax breaks. And your notion of a closed system is a non sequitor, we do not live in a closed system and are not likely to. If we do not improve the supply side first, no amount of stimulus is going to make a permanent difference.

 

[Twofox]

" If they don't see a demand for it, it doesn't get manufactured."

But the perceived demand is based on the price they'll have to charge to make a reasonable profit. The higher the price has to be, the less demand you can expect.
" they dont make something saying if we price it cheap enough people will buy it. "

I guarantee you they will say if we can't make this cheap enough, people won't buy it. That is why the supply side cannot be ignored.

No.

A pile of XXXX is a pile of XXXX even at bargain basement prices. No one is demanding piles of XXXX.

???? The quality of the product or service is also part of the supply side, and influences the price if it does not provide enough value for the money. Even a high quality product will not sell if it is priced too high.

And supply side economics ( giving money to job creators to create jobs ) can work but not give the dersired result. It will ONLY work in a closed system. The closed system is now GLOBAL not national. Therefore, giving tax breaks WILL create jobs, but those jobs will be in Singapore, or Guatamala.

Supply Side economics is obsolete.

Supply side economics does not mean giving money to anybody. It's about creating an environment where business can flourish, doesn't have to be subsidies and tax breaks. And your notion of a closed system is a non sequitor, we do not live in a closed system and are not likely to. If we do not improve the supply side first, no amount of stimulus is going to make a permanent difference.

Guys, I think you both had it right but didn't realize it. Lowering the cost of goods produced... how do you do that? One way is by lowering the cost of doing business. It can be be (gasp) lowering taxes on businesses and investement, or by lowering cost of regulations. Basically, if it costs less to do business in the US, we will have more businesses here. That's a great place to start. If that doesn't do it, then we can look deeper, but we NEED to welcome our businesses first, not push them away.

 

[Mr Natural]

No.

A pile of XXXX is a pile of XXXX even at bargain basement prices. No one is demanding piles of XXXX.

???? The quality of the product or service is also part of the supply side, and influences the price if it does not provide enough value for the money. Even a high quality product will not sell if it is priced too high.

And supply side economics ( giving money to job creators to create jobs ) can work but not give the dersired result. It will ONLY work in a closed system. The closed system is now GLOBAL not national. Therefore, giving tax breaks WILL create jobs, but those jobs will be in Singapore, or Guatamala.

Supply Side economics is obsolete.

Supply side economics does not mean giving money to anybody. It's about creating an environment where business can flourish, doesn't have to be subsidies and tax breaks. And your notion of a closed system is a non sequitor, we do not live in a closed system and are not likely to. If we do not improve the supply side first, no amount of stimulus is going to make a permanent difference.

Guys, I think you both had it right but didn't realize it. Lowering the cost of goods produced... how do you do that? One way is by lowering the cost of doing business. It can be be (gasp) lowering taxes on businesses and investement, or by lowering cost of regulations. Basically, if it costs less to do business in the US, we will have more businesses here. That's a great place to start. If that doesn't do it, then we can look deeper, but we NEED to welcome our businesses first, not push them away.

We could totally eliminate business taxes and regulations and that would do nothing to change the fact that cheap foreign labor costs a fraction of it's American counterpart.

 

[Foxfyre]

Supply side economics does not mean giving money to anybody. It's about creating an environment where business can flourish, doesn't have to be subsidies and tax breaks. And your notion of a closed system is a non sequitor, we do not live in a closed system and are not likely to. If we do not improve the supply side first, no amount of stimulus is going to make a permanent difference.

Guys, I think you both had it right but didn't realize it. Lowering the cost of goods produced... how do you do that? One way is by lowering the cost of doing business. It can be be (gasp) lowering taxes on businesses and investement, or by lowering cost of regulations. Basically, if it costs less to do business in the US, we will have more businesses here. That's a great place to start. If that doesn't do it, then we can look deeper, but we NEED to welcome our businesses first, not push them away.

We could totally eliminate business taxes and regulations and that would do nothing to change the fact that cheap foreign labor costs a fraction of it's American counterpart.

But we can also set up a business climate to make it much more profitable and attractive to do business in the USA too. For certain, a hostile business climate in the USA is not going to encourage more business, more jobs, and/or more domestic prosperity.

 

[Twofox]

Guys, I think you both had it right but didn't realize it. Lowering the cost of goods produced... how do you do that? One way is by lowering the cost of doing business. It can be be (gasp) lowering taxes on businesses and investement, or by lowering cost of regulations. Basically, if it costs less to do business in the US, we will have more businesses here. That's a great place to start. If that doesn't do it, then we can look deeper, but we NEED to welcome our businesses first, not push them away.

We could totally eliminate business taxes and regulations and that would do nothing to change the fact that cheap foreign labor costs a fraction of it's American counterpart.

But we can also set up a business climate to make it much more profitable and attractive to do business in the USA too. For certain, a hostile business climate in the USA is not going to encourage more business, more jobs, and/or more domestic prosperity.

That was exaclty my point. Due to exchange rates, COMPETITION, and other factors, pay rates may always be cheaper overseas. So instead of whining about how unfair it is, or blaming (insert politician here) for it, simply realize that it's a competitive world out there and we, as a country, need to compete. Making the US more business friendly is a great start, and something we simply don't do currently. We need to change the things we can...

 

[Intense]

We could totally eliminate business taxes and regulations and that would do nothing to change the fact that cheap foreign labor costs a fraction of it's American counterpart.

But we can also set up a business climate to make it much more profitable and attractive to do business in the USA too. For certain, a hostile business climate in the USA is not going to encourage more business, more jobs, and/or more domestic prosperity.

That was exaclty my point. Due to exchange rates, COMPETITION, and other factors, pay rates may always be cheaper overseas. So instead of whining about how unfair it is, or blaming (insert politician here) for it, simply realize that it's a competitive world out there and we, as a country, need to compete. Making the US more business friendly is a great start, and something we simply don't do currently. We need to change the things we can...

Agreed. Further, expanding Government, only adds to the burden.