Businesses Do Not Create Jobs

A job is created when demand for goods or services is greater than the existing ability to provide them. When there is a demand, people will see the need and fill it. Either someone will start filling the demand alone, or form a new business to fill it or an existing provider of the good or service will add employees as needed. (Actually a job can be created by a business, a government, a non-profit organization or just a person doing the job, depending on the nature of the good or service that is required.)

So a demand creates a job. A person who sees that houses on a block need their lawns mowed might go door to door and say they will mow the lawn for $10. When houses start saying “Yes, I need my lawn mowed” a job has been created!

Demand also creates businesses. The person who is filling demand by mowing lawns for people might after a while have a regular circuit of houses that want their lawns mowed every week, and will buy a truck and a new mower and hire someone to help. A business is born!

(Source: azspot)

  1. ofseasandnations reblogged this from liberalsarecool
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  3. inlikewithlife reblogged this from greenstate and added:
    *sigh* Exactly my thoughts.
  4. waiyanjpn reblogged this from azspot
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  6. caterpillarcowboy said: Disagree, in that startups who are creating new markets are by definition creating demand that hadn’t existed before. People can’t demand something they’ve never heard of or imagined.
  7. dunkerz reblogged this from pdl2h
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  11. notemily reblogged this from greenstate and added:
    Businesses in our economy exist to create profits, not jobs. This means the incentive is for a business to create as few...
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  13. liberalsarecool reblogged this from azspot and added:
    If you don’t have a job, what does a tax cut do for you? We are in a down economy and supply side economics does not...
  14. szechwean reblogged this from greenstate and added:
    Just giving more money (in the form of tax cuts) to businesses and people who already have money is not going to...
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