What is a Job?
A job is when an employer is willing to pay an employee to do some work for an agreed payment. Sometimes this is for a one time task and sometimes this is for an ongoing opportunity.
Some jobs are offered by companies and some jobs are offered by individuals. Wealthy and successful individuals who have lots of money and earn lots of money will pay other people to do some of the tasks many of us have to do for ourselves. This is just one of the evil things done by millionaires and billionaires; they hire some of us to work for them.
Companies are in business to make money, not to hire people. When a business has an opportunity to increase their business and therefore to increase their profits by hiring more employees, then a job is created. Employees are hired to increase profits, not to provide a job for an individual who doesn’t have one.
Some jobs require a great deal of skill and experience and some jobs do not, based on what the job requires will determine who is hired and what the employee earns. An individual with a degree or degrees and some relevant experience will earn more money that someone with less education and less relevant experience. The employer determines how much to pay based on what the job is worth and what the market price is for that job.
An employee, who has responsibilities that effect a lot of potential profit or loss, will earn more than an employee who performs a task. The pool of available candidates for a Senior Vice President of Marketing will be smaller than the pool of candidates for an order processor. A Senior Vice President of Marketing will contribute more to the company profits than an order processor; therefore a Senior Vice President of Marketing should be paid more. Education, skills, and experience should be what a company uses to determine how much to pay an employee. The free market should also be part of the process to help a company determine how much to pay.
When a company needs an order processor and wants to pay two hundred dollars a week for that job, they will not have many candidates for it if the rest of the market is paying three hundred dollars a week for that position. When the company wants to pay two hundred dollars but the rest of the market is paying one hundred dollars then they will have more candidates than they want. The free market does a good job or leveling the playing field.
At what point does a company decide to eliminate a job? As business deteriorates because it cannot compete with the competition the company has to cut expenses. Reducing the number of employees helps reduce the expenses. Less business requires fewer employees to accomplish what is required to survive.
Whatever the product or service is the company uses the actual cost of the product or service plus the market to determine what the consumer has to pay for the product or service. If a competitor can significantly reduce the cost of a product by out sourcing the labor to a third world country, then competitors have to consider how much they spend on labor to remain competitive. The price that customers pay for goods and services determines how much a company pays for employees.
Government intervention is usually more of an obstacle to jobs than a help. The taxes and government regulations add a significant expense to employers. Government requirements such as Social Security and benefits that must be paid for each employee are variables that employers have to consider before making a commitment to an employee. These variables effect how much an employee can contribute to an organization before it makes sense to hire more people. The organization exists to make a profit for the owner or the stockholders. As expenses associated with employment exceed the potential contributions an employee can make, employers will be reluctant to hire more employees.
Employers want to make money not hire employees. They want to hire employees when that will lead to profit. Profit leads to earnings and that leads to tax revenue for greedy government. Treating those who earn profit such as big business or millionaires and billionaires as bad people or bad organizations seems counterproductive to me.
Millionaires and billionaires hire people and invest in businesses that allow more people to earn a living and pay taxes. Successful businesses and big corporations make a profit and are successful; then they require more employees to stay successful also create more tax payers.
Government will almost always be an obstacle to jobs, successful and wealthy businesses and individuals will create more jobs. We have to celebrate the successful and encourage them to create jobs, not demonize them for their success.
Another helpful hint to politicians, it’s not smart to spend part of your day demonizing wealthy people and then spend another part of your day begging them to contribute money so you can pay for stupid political ads on radio, TV and the internet.
Support your local millionaire and billionaire; it will create more jobs than supporting a lame political campaign.