Who does provide jobs?Is it rich people?Corporations?Small business?Government?Who?How are jobs created? First there is a product or,increasingly more,a service.Usually one or two or a few people are involved with creation of a business, involving the sale of that product or service.
Demand determines whether help is needed.As demand increases,more help is needed:sales
force,more product suppliers,more office workers,etc.As the business grows,it becomes beneficial to incorporate-for various reasons.Then comes expansion,diversification,buying other
companies,etc.At some point money is needed,so the business goes public to offer and sell stock
All workers become employees of the corporation.Eventually it can become a large corporation
and provide lots of jobs.Jobs are created throughout the growth process. But essentially it is demand that determines the growth.
So,how are jobs really created?Unless a business is understaffed,extra money will rarely create jobs.Jobs are created as demand for their product or service increases.Extra money for purchasers of products can create demand because purchasers are never at the saturation point.Extra money for suppliers is more likely to decrease jobs because that money can be used to increase productivity and training.That use can increase jobs for the peripheral suppliers,but rarely more than the decrease for the peripheral buyer.The buyer will not spend more than they can gain.Usually profit will provide for streamlining anyway,and at some point productivitywill reach a benificial saturation point.
Essentially,though,jobs are created through demand. Giving more money to the suppliers will not create more jobs(other than spending on luxuries). Usually excess money is invested to make more profit(or loss),but that profit will not be used to create jobs that will increase demand for primary products.
The biggest problem with big business and corporations is administrative payThere is no justification for CEO and upper administration compensation.It appears to me that most of business profit ends up there;not reinvested or used for pensions or health insurance for employees as was the case when most business was smaller and privately owned and had more regulation.Business needs regulation or greed will prevail.Greenspan thought that the free market would regulate itself,but later had to admit that he didn't factor in greed.Short term benefits for CEO's and upper management will supercede expansion and long term reinvestment every time.And the production workers-forget about them.They become expendable.Business will take away whatever it can from the workers.They used to care,but no more.The money comes from short term investments and goes to administration-until failure and then it's bail- out.
What of government?Government can create and save jobs.Bailouts are the prime example.Bailouts saved a lot of jobs and could have created more if regulation had been strengthened,but not much was done in that areaThe problem that arises with government is the constant concentration on decreasing government jobs.All of the states are trying to eliminate government jobs.Almost every state has attempted to cut state jobs by 15%.Another problem is that government jobs must be paid for by government.
The most effective way that government can increase employment is with the creation of new industries or longer term projects that will need employees. Present concentration in that area is in energy:windpower,solar,etc.The goal is to subsidize until private enterprise can sustain it on its own.But in order to be effective,regulation must be in place.The obvious problem is monitoring subsidies.The subsidies should be stopped when no longer needed.If that happens,government can be an effective means of job creation.Agriculture,oil,and ethanol subsidies have created many jobs,but why haven't the subsidies disappeared?Government regulation is vital whether jobs are being created by demand alone or with government assistance in creating more demand.
Improved infrastructure has been a government favorite for decades but appears to be graft and waste infested(corrupt and ineffective and too temporary).Private enterprise is more effective if using it's own money,but not if using government money;then,as Greenspan discovered,greed supercedes.It doesn't have to be that way. If proper regulation is administered
and enforced,government and private enterprise together can create jobs.
Government alone can also be effective,but the same principles apply.Social Security is a good
government program.The IRS is a good institution.Medicare can be agood program.But the same principles apply with government as with private enterprise.Regulation is imperative or waste and greed interfere with effctiveness.Many more jobs can be created in regulation alone.
In summation,the biggest factor in creating jobs is demand.Second is the regulation of private
enterprise and government when government money is involved.Third:greed must be eliminated.The trickle-up must stop.More money must be provided for the purchasers,
the consumers,in order to create more jobs.
