Sunday, February 20, 2011
Why job growth is slow
I'm not going to make this long I just want to give a real plain and common sense view as to why the economy isn't growing the way people would like it to. It's a very simple reason. Businesses are making the same or even greater profits with their current workforces. They are meeting and beating their numbers from the economic boom times. From a business perspective they have no real incentive to hire anyone else. Why pick up an 11th person when you have 10 doing the job just fine. All that an extra person adds is another benefits package to manage and what company wants to do that? NONE. People need to realize that businesses are in the business of making money, not being altruistic. They are not out to better society, they're there to sell a product and to keep the shareholders happy. With that focus in mind it's for the rest of society to realize that no matter what happens, until businesses have a compelling incentive to hire they will continue with business as usual. Any thoughts? Feel free to comment.