Who Creates Jobs? Not Who You Think- Perhaps.

We often read endless debate about who creates jobs.

Depending upon a particular agenda many factions claim credit for job creation. Typically, the rich, entrepreneurs or even governments lay claim to the phenomena of job creation, each usually cries for support or additional personal advantage because of their claimed "contribution" in the matter of job creation.

In these cases the job creation claims are nonsensical and in fact may be fraudulent claims if leveraged to obtain funding from the public purse.

The fact is... non of these claimants creates jobs, it is more probable these factions contribute more to job loss, not job creation.

Who or what then REALLY creates employment opportunity?

Simply, demand for products or services does.

If you wanted to ascribe job-creation credit to a faction it would be to the consumer faction--a collective of ordinary people who want or need specific goods and services. If a product, good or service is in demand the producer of it is motivated into a mode of expansion to meet demand.

This demand is the driver of job creation--period!

The job opportunities resulting from higher demand for the item can be direct or indirect. Direct in that workers are needed to increase volumes, indirect in that additional resource or infrastructure is needed in the expansion phase.

As more folks avail of the created jobs another key component is expanded, the addition of more individual consumers who have disposable income to spend into the consumer arena. This could be described as the job creation cycle.

As much as rich individuals claim to create jobs, the fact is their contribution as consumers is only marginally greater than an ordinary citizen--they do not usually consume much more than anyone else. Corporations are not in business to create jobs, in fact they are always more interested in reducing the labour component of their costs. Entrepreneurs are interested in starting businesses but then selling them of to corporations.

Governments giving corporations tax payer money does not create jobs--corporations only take on employees when demand exceeds their capacity to supply. The funds do not create jobs--consumer demand does. Jobs created within government are simply the mechanism to enact the thousands of laws and legislation to the advantage of the government, these jobs contribute nothing to the productivity of a country and usually compete unfairly in the job market.

The government as an employer--they claw back a substantial portion of the wages paid in the form of income taxes--the epitome of cheap labour practices. It is certain that the ability to take back a large portion of wages paid distorts all other economic factors and unfairly competes for skill set against the private sector. Imagine a corporation where the employee has to give back a large portion of their paycheck to the employer--surely that practice is illegal.

The point is though, Anyone, especially politicians who claim they create jobs is selling you a bill of goods and should be challenged on their claim.

Stay tuned...

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