Mathbud1
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- Jan 2, 2014
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For the purposes of this discussion I would have to say that a job is only created if a person is hired or sought to fill a paying position. Economically speaking, that's what we're talking about.
If you have more work to accomplish and simply require those you already employ to do that additional work or just do the work yourself a job has not been created as far as the economy is concerned.
That's why demand can't be said to create jobs, because it doesn't. Higher demand may mean that a business has more work to accomplish to meet the demand, but until the company hires another worker a job has not been created. The company, based on costs, may decide that hiring another worker just isn't feasible. They may decide to increase the workload of the existing employees, invest in ways to increase efficiency, or simply opt out of meeting the higher demand at all. In all such cases demand rose but no new job was created. In the case of investing in increased efficiency some jobs may even be eliminated.
If there was no demand would the hiring occur?
Would a fire start with no fuel? No. Does the fuel create the fire? No.
Need I continue?