Quote:
Originally Posted by mynameisjim
First of all, the reason companies aren't hiring people is because they don't need any new employees. The reason they don't need any new employees is because overall demand for goods and services is down because everyone is broke.
So how will giving people EVEN LESS money to spend going to increase demand and therefore spur companies to hire more people?
Cutting wages will further sink the economy and cause even more unemployment.
The jobs debate has been totally derailed because of all this tax bullshit. Companies have ZERO interest in hiring anybody right now because they don't need to. You could lower taxes to zero and lower the minimum wage to $1 and companies still wouldn't hire anybody because they have nothing for them to do.
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That's ridiculous, there is ALWAYS stuff to do... companies don't hire because benefit from hiring is lower than the cost... lower the cost and the benefit vs cost equation shifts in favor of hiring more people...
Take fast food industry for example... most fast food places are not open 24/7... and that's because lets say they earn $200/night, but have to pay $250 in labor costs... so it makes no sense to keep McDonalds open at night.... lower the cost of labor to $150 and suddenly, there is room to hire some night shift workers...
similar logic can be applied to ANY business...
(by cost of labor, I don't necessarily mean wages, but also various taxes, unemployment insurance, health insurance, and other costs and barriers to hiring...)