Creating Jobs Is A Political Target; Creating Products Is A Business Target
Long term, no business with a primary goal of creating jobs can survive. Business must provide needed goods and services that generate enough net revenues to pay employees necessary to do its goals, pay suppliers, and pay its taxes. Job creation, per se, never is a business goal.
I listened intently to President Obama’s talks about his jobs bill. I heard him stress repeatedly, the need to pass it quickly. Truly, I am amazed he and his advisers think passing this bill would create enough jobs to dent unemployment. How naive!
Really, do these politicians and economic advisors believe another stimulus measure will cause business leaders to expand their businesses? Business hates uncertainty. Why would business leaders add permanent employees to existing businesses in this economic environment? Why should they? They know the government is looking to raise taxes to fund its spendthrift lifestyle. Besides, if each business merely adds employees to its payroll and then passes on the extra costs, consumers and Congress will cry foul.
The government does not get it. It does not understand that it must create conditions for business to grow; it cannot legislate job creation. Business needs people to produce products and to provide services. Truthfully, hiring more people is not a business goal. This statement is not politically correct, it might offend some people, but it is reality. I say again, job creation is not a primary business goal. That is why government must create conditions for business to flourish, and in this process, business will create more jobs--jobs being the byproduct of a healthy, growing business. To be competitive and survive, business should carry only employees needed, especially in a restrictive union environment.
I guess the President, his advisers, and many members of Congress, have never worked as business executives, and so they do not understand that a business’ focus is not job creation! Let me add quickly that I do not think only experienced business executives can comment intelligently on job creation. However, politicians’ naive and asinine recent comments about job creation, suggest they need education about business. And they need it urgently.
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