OT .... Thoughts on ..

I ran my own small biz for 30 years and usually had an employee or two, and
for the 10 years before that I was in middle management of a large company
and responsible for budget and staffing of my dept, about 10 peoples job's
were at stake. Those 40 years are my entire education in "economics," so
I certainly don't claim to be expert. But, I see things posted here that
seem to be little more than blindly repeated, politically inspired, bunk, so
my own contributions can't fall too far below the bar that has been set.


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Thoughts on ..

1) "creating jobs"

Every one of the millions of jobs that have been lost recently was "created"
at some previous time. Creating is damn easy, I could create one this
morning by simply hiring a "ranch manager." Problem is, I'd have to lay
him off this afternoon because I ran out of funds to support that job.
The "creating" is, at best, worthless unless they can be sustained.

It's true that 'Money' creates jobs, but, in most cases, that does NOT mean
what people think. Job's created by true venture capitalists are, I'm
sure, a very small % of the total. And venture capital does damn little
to sustain those jobs, the ideas, products and people 'capitalized' have to
produce and sell or the jobs soon vanish.

The money that matters most is the money that inspires and sustains a job.

For a simplistic example, let's say I own a small sto The business at
that store gradually grows and I notice lines at the registers, looks of
frustration in the faces of my increasing clientele when help isn't
available quickly. THEIR money, that I hope they will spend in my store,
is my inspiration to add an employee .... AND it's the money that will keep
that new guy employed, hopefully for years. Any money of my own ( or
borrowed ) that I use to get a new cash register, etc. is only a very short
term investment ... 'money' true, but not the really important money. The
important money is the money the average customer is spending, over the long
term.

And that important money must be available in quantity greater than just
enough to pay the new guys salary. I am a business man and I must recover
that salary, the money I spent on the register and interest, and increase my
profits. Tending to the problems associated with employees simply isn't
worth having another one UNLESS he makes me more than he costs me ...
obviously. Most businesses, regardless of size, add employees slowly,
one at a time nearly ( obviously there are seasonal exceptions and very
rapidly growing market ones too ). It's generally better biz to be a tiny
bit short handed than overstaffed. Taking a short term windfall to
'create a new job" unless the prospects of the long term flow of Mr.
Average's money will sustain that job is BAD business ... taking "$300,000
to creat 30 jobs" without a market to support them is pure folly.

The 'money' that is going to make my theoretical new guy's job possible as a
practical matter isn't MY "rich guy creating jobs' money, it's Joe Average's
money he spends and puts into the economy, partly via my store. I have
customers from all levels of the economy, the wealthy ones are steady
shoppers buying about the same in good times and bad, but it's the "Joes"
that buy when they can, don't when they have to cut back, that make the new
guys job secure, or not.


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other thoughts may follow in other posts