|Source:Associated Press- Governor Mitt Romney (Republican, Massachusetts) and Governor Rick Snyder (Republican, Michigan) campaigning in Michigan.|
“Republican Presidential candidate Mitt Romney held a small business roundtable in Frankenmuth, Mich. Tuesday morning. The state is his final stop on a five-day, six-state Midwestern tour. Earlier he said he thinks Michigan is a state he can win.”
From the Associated Press
Telling someone to hire people, won’t create jobs. Mitt Romney and Barack Obama says it’s time to hire new employees: “Well, just because of that alone, we are going to start hiring more people right way, because they know with their vast experience in running small business’s on how best to run our business’s, then we the people who are keeping these business’s, well in business”. It doesn’t work that way. What creates jobs in either small or big business, is the need to hire new employees. It’s as simple as that.
Mitt Romney and Barack Obama waving their magic economic wands, won’t get small business’s to hire more people right now if profits are down or flat or you are worried about just staying in business. Perhaps trying to figure out how to obtain a loan, just to stay in business. You aren’t going to look for way to increase your payroll, if anything you are going to look for ways to cut payroll, to save money.
Small business’s aren’t hiring right now, because economic growth is low, job growth is also low because of weak economic growth now three years into the economic recovery from the Great Recession of 2008-09. Economic growth is low because consumer demand is low. Consumer demand is low, because people simply aren’t spending money right now.
If reading any of this makes you dizzy, I completely understand. I’m dizzy just from writing it. Americans are spending just to meet their basic needs and are struggling just to do that. One reason why it’s a bad time to pass tax hikes. Sorry Socialists, tax hikes and tax increases are not always a good thing a cure to any disease, economic or otherwise. But all these things in the economy are linked together and are holding our economy down. So the way to create jobs and get small business’s to start hiring again, is by giving them more customers. Give them more demand so they need more employees to meet the new consumer demand.
You don’t create new jobs by making small businesses jobs tougher by taking more of their money from them to feed Uncle Sam, who needs a diet anyway. The way you create more jobs, is to create more demand and need for new workers. That is how we get the economy going again. Sounds simple, now we need policies to encourage that. So first, let’s not pass tax hikes right now, the payroll tax or anything else. Consumers need that money in their pockets and for jobs to be created, they need to spend that money.
One way to do that is to create jobs for small business like with infrastructure investment, passing an infrastructure bill out of Congress in the hundreds of billions of dollars over two years. By giving construction companies more work to do, they’ll end up needing new employees to do that work, which will create more and new jobs, hiring unemployed construction workers.
Economics 101: to create new jobs, you first need to work and business to do. These people will now have some money to spend with their new jobs and would add to our consumer spending, which will lead to new consumer demand, which will lead to new economic growth, which will lead to more job growth.
All of these things are linked together and when they are all doing well, like just as little as 5-6 years ago or in the 1990s economic and job growth are high. But when they are down, our whole economy as far as consumer demand, consumer spending, economic and job growth are all down. Which is the situation right now. So to fix these problems we need to encourage people to spend money again. You don’t fix the economy with politician’s saying: “Now it’s time to hire for the good of the country!” Business’s need good reasons to hire that will help their business’s first.
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