December 02, 2010

Misguided and wrong

In this ongoing debate about the Bush tax cuts and whether millionaires deserve to have them continue, one of the arguments Republicans make is that those people are the ones who create jobs.

NYT, November 24, 2010.

American businesses earned profits at an annual rate of $1.659 trillion in the third quarter, according to a Commerce Department report released Tuesday.
So if they're making money hand over fist, why are they not creating jobs? Could it possibly be that they don't see enough demand to increase production? That their profits are up because they're making more with fewer people, and they like it that way?

Posted by Linkmeister at December 2, 2010 12:31 PM | TrackBack
Comments

Wish I could remember just where I saw this recently but anyway, I read that when people talk about "supply and demand", they have it backwards. First comes the "demand" for a product or service, then someone comes up with a way to "supply" that service or product. If there's enough demand, then more jobs are created as the problem solver works to get more product or service to those demanding it.

Well, at least that's how it used to work. Now producers seem to have people whose sole reason for being is to come up with products or services that they "think" people might buy. No wonder the economy is all screwed up.

Posted by: Illanoy Gal at December 3, 2010 12:34 AM