Why do politicians promise to create private-sector jobs when they aren’t the ones who hire people in the private sector? How can a politician actually create a private-sector job? These are questions I ask people I know and people I run into. Their answers really demonstrate how little the average person knows about economics.
You’re seeing headlines in the MSM and quotes by the ruling class ridiculing corporations for holding vasts amount of cash and not spending it “to create jobs.” The answer is easy. To find the answer, don’t look at earnings reports showing glowing EPS growth. Instead, look at revenue and see if a companies’ top line is growing. If the company’s top line is not growing, i.e. more customers to serve, why would the business add costs?
The answer is: a business wouldn’t.
What is the reponse by the ruling class and MSM? Increase taxes on corporations and the rich because they can afford it.
Is their an answer that will cause businesses to increase their spending? Cut the size and scope of federal, state and local governments. Cut the regulatory burden (regulations only help governments and government employees).
The key words associated with the answer are cut anything government.
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