There is a great focus in our public discourse on jobs being representative of the health of our economy. Why? This doesn't make that much sense since we like in a capitalism economy, not in a labor-ism economy. Private business make up the majority of our economy and are often the main drivers of economic growth and job growth.
However, businesses aren’t in the business of creating jobs. At best, job
creation is a byproduct of a successful business. Most businesses — most
successful
businesses — actually destroy jobs. That doesn’t mean businesses are
evil; it’s just what they do: They create wealth for their owners by
maximizing profits.
Maximizing profits often means minimizing costs, especially the labor
costs that account for up to three-fourths of the overhead businesses
carry each month. Destroying jobs — by introducing more productive
methods, by outsourcing labor to other companies or to other countries,
by cutting to the bone — is often the only way businesses survive in
this competitive world.
The fact remains that businesses aren’t job creators; they are profit maximizers. The two goals are very different.
For businesses, jobs effectively are a necessary evil. Jobs
represent a cost, which must be minimized. Of course, the business must
hire some people to produce its goods and services, but the focus is
always on profit. If it’s profitable to hire more workers, then the
business will hire more workers. If it’s profitable to fire workers,
then most businesses will fire workers.
Jobs are super important. It's the way 98% of breadwinners make money to support their families. However, it is not the job of private business to create jobs. In business schools across this country, there are probably 0 classes strictly on "job creation". Here lies one of the biggest potential sources of tension in our society. Hopefully it doesn't end in violent revolution.
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