seriously, just answer the question. if policies arent the only things that affect the economy and job creation then what does. its a simple enough question, but youve been avoiding it for several posts now. just answer the damn question.
youre the wing nut who claims that policy isnt the only thing that affects jobs. so back up your claim.
It is a simple question. But it's not the question you asked. I know your pride won't let you admit the truth, so I figured I'd just quote the question you asked:
what warped view. you said policy changes dont affect jobs, i said they do. well if policy changes dont affect jobs then what does?
Anyone familiar with the English language, of course, realizes that those are two very different questions predicated on completely different assumptions. Of course, English might not be your first language, and if so I completely understand why you are having difficulty understanding. Keep working on it and I am sure you will.
To answer the question, there are lots of very complex factors (Which I believe I did mention before). However, since you didn't like that question I suppose Ill exaplain a bit more in depth.
You see it's all about Expectations. If a business believes that they can make more money and will need an additional work force, then they will hire people. If they don't. They will place money in less risky places until the time comes when they can or they might even go out of business.
Now Public policy can change expectations. Lowering taxes, for example, can create a higher expectation for profits, meaning businesses more willing to risk investing in more labor, etc. Increasing taxes means companies might not be able to afford as many employees. Regulations, artificial increases such as minimum wages, etc, are also policies that might change expectations.
But there are also other things that effect expectations. Seasonal sales. The weather. Energy Prices. Land prices. Interest rates. Competitors (Foreign and domestic). New Technology. Etc. Changes in these things may have little to nothing to do with the current government policies or anything.
The best thing for economic growth is stability. When the companies dont know what the government is going to do on a month to month basis it's difficult to predict what potential customers will do and determine where growth posibilities are. Without being able to predict where profits can be made, they aren't going to be hiring anything.
It wouldn't suprise me if Businesses did start hiring more because Republicans took the House. Not necessarily because of any policy changes they might implement. But quite possibly from the hopes that with Republicans and Democrats controlling different parts of the government, there will be gridlock. Which means that sweeping changes are less likely to happen. When there are less changes, there is higher predictibility.
Unfortunately, I dont think they've completely factored in the vast power of the executive branch to unilaterally change policy through it's various agencies. And Im not sure they've completely factored in the Inflation guarenteed to come in the next few months. It might stall any job creation that's occuring and make them even more wary about hiring.
Now, please try to read what I just wrote and not make things up. It's very time consuming and completely disrespectful to other people.
