Don t Let Anybody Tell You That Businesses Create Jobs

[boedicca]

I have already outlined several times some of the other factors that have to be considered before the decision to hire is made: costs such as the cost of additional space for more workers, the cost of additional tools or machinery for the additional workers to use, cost of benefits for additional workers, cost of increased utilization of sanitary facilities by additional workers, costs to certify or train additional workers, cost of additional management to manage additional workers, risk associated with bringing on new workers, etc etc etc. Demand is definitively not the only factor that has to be considered before a person makes the decision to hire another.

Here is a readily available example of when demand can go rampant without necessitating the creation of more jobs: software. Once the software is published it could be sold to every person on the planet without necessarily requiring a single additional job. After the initial development costs, the cost to produce additional units is incredibly small (or zero).

The same can be closely replicated in a highly automated manufacturing environment that creates relatively inexpensive products. Once you have workers to monitor the machinery, running the machines with light utilization saves energy costs, and production can be ramped up to meet additional demand with nearly only increased energy and raw materials costs. No new jobs required.

This clearly shows that demand is only one factor of many that is considered in the job creation process.

All are secondary to demand creating jobs, which is first, which is always first.

How can demand be first when only people with jobs can have any effective demand?

I'd like to know how many people Demanded Lightbulbs from Thomas Edison before he invented them.

The demand was for a better way to light up the night. The demand was strong. Oil based lamps were expensive to maintain and did not put out enough light.

People wanted light. That didn't mean they'd want a light bulb.

 

[bripat9643]

I'd like to know how many people Demanded Lightbulbs from Thomas Edison before he invented them.

Edison didn't invent the light bulb. The demand caused by Alessandro Volta, Henry Woodward, and Mathew Evans, I'm sure had to do with Edison's commercial success.

Bill Gates started Microsoft using another persons operating system.

Steve Jobs didn't invent the iPhone, he directed his employees.

You are simply pathetic. You're like the guy when confronted with irrefutable evidence that his conspiracy theory is wrong claims that the evidence just goes to show how utterly diabolical the plan was.

 

[bripat9643]

The Creator is someone else who sees an opportunity to develop the supply and is willing to risk his capital and time in doing so.

You go to that same bogus school of economics the rabbit went to?

But lets look at your statement of "someone else who see an opportunity to develop the supply"

What does "develop the supply" mean. It means that someone has recognized the DEMAND for a good or service and that person is NOW developing the supply to meet the demand. And they are using/risking their capital to meet that demand.

Hope that helps cause you sure as hell seem confused about this stuff.

The bottom line is that without the creator there would be no supply.

 

[bripat9643]

How did any of those people cause millions of investors all to make the same wrong decision regarding the future price of stocks?

What stock are you referring to in which millions of investors all made the same wrong decision?

You do know that many internet stocks are rising right?

The reason for bubbles is a large number of people becoming drunk with excitement over the supposed opportunity of easy money. It's a human condition that is not something we can blame any one person for.

Wrong. The reason for all credit bubbles is the government artificially lowering interest rates below the market rate, usually by creating money. Investors are thereby led to believe that the public has a higher preference for in vestment than it really does.

 

[bripat9643]

Higher prices cause greater demand? You're putting the cart before the horse, son. Higher prices have exactly the opposite effect.

Higher prices cause greater demand if you can show quality.

In other words, they don't. Higher quality causes higher demand.

Your understanding of economics is hilarious.

 

[OnePercenter]

How did greed cause them all to make the wrong decision on whether to buy or sell?

Besides an intense and selfish desire for wealth? If you don't understand that you must be a Libertarian.

 

[bripat9643]

How can demand be first when only people with jobs can have any effective demand?

People with money.

Where do they get the money?

 

[bripat9643]

How did greed cause them all to make the wrong decision on whether to buy or sell?

Besides an intense and selfish desire for wealth? If you don't understand that you must be a Libertarian.

Greed is as old as creation. Why should it manifest more at some times than others?

 

[OnePercenter]

How did greed cause them all to make the wrong decision on whether to buy or sell?

Besides an intense and selfish desire for wealth? If you don't understand that you must be a Libertarian.

Greed is as old as creation. Why should it manifest more at some times than others?

Since greed is a human emotion you really went out on a limb for that one.

 

[The Rabbi]

Higher prices cause greater demand? You're putting the cart before the horse, son. Higher prices have exactly the opposite effect.

Higher prices cause greater demand if you can show quality.

In other words, they don't. Higher quality causes higher demand.

Your understanding of economics is hilarious.

He has none. He makes it up as he goes. Higher prices lead to greater demand, not less. Companies spring up when consumer demand hits a critical level. It's like backwards week in the Econ Deparmtent.

 

[OnePercenter]

He has none. He makes it up as he goes. Higher prices lead to greater demand, not less. Companies spring up when consumer demand hits a critical level. It's like backwards week in the Econ Deparmtent.

If you start after consumer demand hits critical you are too late.

 

[Mathbud1]

He has none. He makes it up as he goes. Higher prices lead to greater demand, not less. Companies spring up when consumer demand hits a critical level. It's like backwards week in the Econ Deparmtent.

If you start after consumer demand hits critical you are too late.

If you start what? The company springs up spontaneously from the demand right? Isn't that what you've been saying this whole time? That the jobs are spontaneously created by demand?

How could anyone ever be late in that case?

 

[The Rabbi]

He has none. He makes it up as he goes. Higher prices lead to greater demand, not less. Companies spring up when consumer demand hits a critical level. It's like backwards week in the Econ Deparmtent.

If you start after consumer demand hits critical you are too late.

If you start what? The company springs up spontaneously from the demand right? Isn't that what you've been saying this whole time? That the jobs are spontaneously created by demand?

How could anyone ever be late in that case?

And of course the first thing companies do is sell product, right? I mean, there is never any outlay for plant, material, equipment, utilities or labor first, rigth? It just all comes from sales.
OneBrainer would be a big hit in stand up comedy.

 

[bripat9643]

How did greed cause them all to make the wrong decision on whether to buy or sell?

Besides an intense and selfish desire for wealth? If you don't understand that you must be a Libertarian.

Greed is as old as creation. Why should it manifest more at some times than others?

Since greed is a human emotion you really went out on a limb for that one.

One thing is certain: logic is not one of your capabilities.

Now explain, why should every investor get "greedy" at the same time?

 

[bripat9643]

Higher prices cause greater demand? You're putting the cart before the horse, son. Higher prices have exactly the opposite effect.

Higher prices cause greater demand if you can show quality.

In other words, they don't. Higher quality causes higher demand.

Your understanding of economics is hilarious.

He has none. He makes it up as he goes. Higher prices lead to greater demand, not less. Companies spring up when consumer demand hits a critical level. It's like backwards week in the Econ Deparmtent.

He actually agreed that rain creates umbrellas.

 

[OnePercenter]

If you start what? The company springs up spontaneously from the demand right? Isn't that what you've been saying this whole time? That the jobs are spontaneously created by demand?

How could anyone ever be late in that case?

Corporate immaculate conception? That's funny!

 

[OnePercenter]

[
And of course the first thing companies do is sell product, right? I mean, there is never any outlay for plant, material, equipment, utilities or labor first, rigth? It just all comes from sales.
OneBrainer would be a big hit in stand up comedy.

Depends if you purchase an existing company.

 

[OnePercenter]

One thing is certain: logic is not one of your capabilities.

Now explain, why should every investor get "greedy" at the same time?

Every? No even close.

 

[OnePercenter]

He actually agreed that rain creates umbrellas.

Rain creates the need for umbrellas. Consumer spending creates the need for employment.

 

[bripat9643]

[
And of course the first thing companies do is sell product, right? I mean, there is never any outlay for plant, material, equipment, utilities or labor first, rigth? It just all comes from sales.
OneBrainer would be a big hit in stand up comedy.

Depends if you purchase an existing company.

No it doesn't.