For Barry. Who, with his cabinet, has next to no business experience.
There seems to be some confusion by the President about why employers, like me, hire people. He really doesn’t understand business very well.
Let me clear it up for our President…
We don’t hire people to improve the “jobs numbers”.
We don’t hire people to snare small amounts of one time government loot.
We don’t hire people cause we like people.
We HIRE people so they can MAKE MONEY for us.
Corollaries to the above:
We DON’T borrow money to hire people. Once you pay a person that money is gone. Rare is the employee that can generate his pay + excess to repay money borrowed to pay him.
We DO borrow to purchase assets. Money in an asset is just money shifted, not gone (we hope).
We DO borrow to smooth short term cash flow issues based on when we buy components and when customer pay for what we built. But that is AFTER the demand, not before.
And an FYI… money to purchase assets and smooth cash flow and other normal business lending is readily available. If you walked into a banker 5 years ago, or today, to borrow money to “hire people” you would be denied and then laughed at after you left.
February 17th, 2010 at 10:31 am
Local and state pols are clueless too, floating bond issues to pay operating costs, e.g. to do deferred maintenance on parks and schools because there are too many lazy, union member “groundskeepers” and “handymen.”
February 17th, 2010 at 10:35 am
agreed. The locals and state and feds spend our money very poorly.
February 18th, 2010 at 10:06 am
Why would they care? They didn’t have to earn the money.
February 18th, 2010 at 11:37 am
That attitude is why we need a flat tax, or flat fee. Everybody needs to feel the pain of government.