Is it that hard for cons to understand how an economy works?

Question

If i get a ( business) tax break, i am not going to create jobs with it. Im going to bank/invest/spend it on myself. Why will i not do this? Because my business already has enough employees to meet demand and hiring more employees i would have idle employees. And because i want to succeed and make the most profits, i base hiring on need not how much money i have. All my workers have to be able to pay their wages AND make me a profit per manhour worked. IF they dont then i need to get rid of them as i have to many employees( or they are just crap employees and need to be fired)

Consumers create demand. Rich people are not considered consumers. They barely consume anything at all. Your non rich people are your consumers.

AS demand goes up it depletes supplies.
When supplies start to get low companies start to produce more.
This production usually results in hiring and /or longer hours.

This is basic law of supply and demand. Their is no need to increase supply( thus hire more people to make stuff or do work) if you are currently meeting demand. To do so will oversaturate your goods/services on the market causing the price to be even lower.( Your stuff loses value).

If demand goes up then supply will increase.
If demand goes down then supply will decrease.
Supply and demand always try to balance each other( The law of supply and demand).
If demand goes up and supply stays the same the price per unit will go up.(IE: crude oil and OPEC)
If supply goes up and demand stays the same the price per unit will go down to the point you lose money to make something.( IE: SUV market when automakers continued to make SUVs despite steadily climbing gas prices and falling sales)

If you want to create jobs you get more spendable money in the hand of the consumers. They will then buy more stuff. This will cause their to be lower supply levels. Businesses will REACT to this and increase supplies. This usually results in hiring and increased hours.

This in turn results in more money( from the new workers and/or longer hours) being put into the economy from the demand side, since these new hires now have money to spend. This then causes the need to hire more workers to meet the new level of demand and thus we continue to repeat infinitely until bankers allow the consumers to over extend their credit and then sells these toxic mortgages which then causes the market to collapse and thus the whole stack of cards comes back down and has to be rebuilt again using the same method we used the first time but avoiding the mistake at the end hopefully which is were we are at now.

That last bit is an intentional run-on.

I just taught you high school economics. Which everyone should of learned in high school( i know its a required class in my state and has been for over a decade.) I am then assuming most cons do not have a high school education since they dont understand high school economics?

Do we now get how economics works or no?

Answer 1

"Rich people are not considered consumers. They barely consume anything at all. Your non rich people are your consumers."



What the phuck are you babbling about. My entire clientele is in the highest tax bracket.

Answer 2

1) So if you are given a tax cut, you're not going to create jobs with it? That's fine, that's more money you yourself get to keep. There's no law saying that a small business owner HAS to create jobs or hire people, but if the owner wishes to expand, common sense dictates that they need more workers to increase production and to accommodate more customers. That's why I favor tax cuts.



2) The producer creates demand through advertising and promotions. The consumer does what they do best, consume.



3) Supply and demand. The purpose of this is to make x mount of a product and they have to sell a certain amount in order to break even. When demand exceeds supply(in most cases, it does look at companies like Apple and Nintendo and Sony), then supply has to be increased.



I could go on....but this is tiresome.

Answer 3

So your saying to create jobs we should give money to those who will spend it? Did I get this correct?



Okay so Welfare Cracked gets their check. Goes to Walmarx and buys a Flat Screen, DVD player and two DVDs. Walmarx pays the manufacturer for the products.



Good so far?



The manufacturer then pays their employees, they then go out and buy food, pay rent and utilities, put a bit in savings and then buys a product and the cycle continues.



I think I have it right?



And as the money goes through the downward cycle it creates more jobs and so on.



This is a Keynesian Idea and provable...oh but wait. The manufacturing is off shore in China and economy that was stimulated was not the USA but CHINA. So now we need jobs in the USA not China. How do we create jobs in the USA? Well let us look at manufacturing costs. Pay, Taxes, benefits and resources. Pay in the USA is ten times more than China. Okay we can cover that with shipping. Now let us look at Taxes. The worker only pays half of the income tax while the business pays the other half. This other half is not even on a W-2 as apart of unearned wages. So now we get to Benefits. The US Government forces the employee to buy medical insurance for their employees even if they get hurt off the clock. That is fair to the business? nope. Then the big thing Resources. Resources are limited around the world but getting a tree for lumber is outrageous. The EPA can tie a timber company for years based on a complaint without facts. We will say the complaint is unfounded the business has to pay thousands to defend unfounded charges without reimbursement. Years lost, hundreds of thousands of dollars lost, jobs lost.



I just taught you real life and real business and not theory.

Answer 4

So basically your agument is based pretty much off of consumerism (demand side). Hate to tell you, but it is a bit more complicated than that. If there is not adequate investment in the suppliers, it does not matter how much is demanded. Supply is what makes the world go 'round. The whole mortgage thing can be creditied to Barney Frank and his cronies at Freddie Mac. You should advance beyond high school economics...I have a Masters degree in Applied economics, and while I can see you obviously have a solid basis in your agument, I have to disagree with your emphasis on demand. Creating an artificial demand was alot of what caused the housing crunch. Now there are brand new, empty houses all over the country.

Answer 5

"If you want to create jobs you get more spendable money in the hand of the consumers. They will then buy more stuff. This will cause their to be lower supply levels. Businesses will REACT to this and increase supplies. This usually results in hiring and increased hours."



funny how cutting taxes (not raising them like obama wants to do) will achieve exactly what your talking about.

Answer 6

Well it only took a sentence or two to find a flaw in your thinking.

If you bank money or invest money then that money gets invested in other companies who

'are' looking for a loan or more capital to expand. so jobs still get created even if you arent

the one who directly does it. but the capital is there to make it happen.

Also reading further, your notion that rich people are not consumers is so completely wrong.

Rich people eat, generally going out to resteraunts more, taking flights more, buy cars and toys more, hiring people who decorate their house or do landscaping... all of those things more.

I would suggest a remedial economics course.

Answer 7

Everyone Consumes . no matter how rich or poor you are. The more you have the more you spend. Or what the rich are tight up in some Corner, not consuming ?

Answer 8

you wouldn't believe how many people in my neck of the woods depend on the rich to do jobs for them and they consume a lot. so i'm not sure you have all of your facts straight, but good try.

Answer 9

We know far more about how economies work and can be manipulated by the 2.5M words of the US tax code than a failure used car salesman like you will ever know.

Answer 10

I believe they're teachers are the ones they pay dividends too. True story. But hell i learned something . Thanks. Eventually they'll snap and discover abruptly they haven't learned a thing.And that... Those are the only teachers that should be out of a job. I also found out many people like being lied to. It eases they're conscience and the guilt they've felt all their lives. Sorry didn't mean to go on.

Answer 11

It's no wonder this younger generation is so screwed up if that's what they teach in high school...good grief dude!!

Answer 12

How does that song go ? the man hears what he wants to hear and disregards the rest ..

Answer 13

Conservatives wrote the book on a free market system. The libs wrote the book on having a nanny state, aka Marxisim. "spread the wealth around" EQUALS "From each according to his ability, to each according to his needs"



No I am not going to read all that.

Answer 14

I don't think anyone in general knows how an economy works, especially the super shitty, convoluted one that we have today.

Answer 15

Its hard for conservatives to understand anything.

Answer 16

conservatives know everything....get used to it...