UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: jerryab Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1962088  
Subject: Re: 12 million new jobs? Date: 10/4/2012 11:40 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<i.My company did that. In two years time we went from 450 employees at the plant to 200, and did so without "firing" anyone.

So, no new jobs were created. Fewer workers = lower payroll. With same sales = more profit for owners. The term used is productivity improvement.

Increasing the money in peoples pockets increases the amount of investment that will be made, whether in 401K's or direct into stocks. Either way, the investments will go to expand or begin businesses. That increases jobs.

False assumption. If the people do not have jobs, they will not invest--they will spend the money. So there is no more investment. More investment does not happen until more production is needed--because a productivity improvement will pay for itself regardless of more sales.

It worked before. It worked with Reagan. It worked again with Clinton. Mr. Obama said that Clinton showed that government involvement could increase jobs, but failed to say that the increases did not occur until after the 96 elections, when tax rates were decreased across the board. During the early Clinton years, these employment figures didn't change appreciably.

Those were times of rising demand by boomers for a wide range of goods and services--classic Keynesian economics. Tax rates were irrelevant. Demand drove growth--not tax policies. Just about everyone had a job if they wanted one (especially late 1990s). Not so much under Reagan.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Should You Be an Index Investor?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement