It is amazing to me how many people believe businesses in America have an obligation to create jobs.
Our president is one of them, as you can see in the video on RealClearPolitics.
“American taxpayers contributed to that process of stabilizing the economy. Companies have benefited from that, and they’re making a lot of money, and now’s the time for them to start betting on American workers and American products,” President Obama said in a pre-taped town hall with CBS News.
I thought that companies, in a free market, strive for providing a valuable good or service that can be sold for a profit. Isn’t that the point of capitalism?
Profit is Good For Everyone
The goal of any company is to generate and maximize profit. No company (and subsequently, no jobs) can exist without profit.
How many companies do you know of that exist without turning a profit? The answer is none. Even Amtrak, a company that has never in its history generated a profit on its own, turns a profit after the federal government hands them a bunch of our tax dollars. Sometimes companies have bad quarters or years when they are not profitable, but they can survive through those times if they have cash on hand earned from profits in the years before. Companies that do not utilize expense management or enterprise financial management systems or procedures will have a difficult time maintaining profitability. If a company is unprofitable for long enough, it will ease to exist.
Profit is not bad. In fact, profit is very, very good.
Maybe you don’t believe me. Maybe you believe companies have an inherent obligation to hire workers and create employment, regardless of profit. If that’s the case, then I invite you to be a part of the Unemployment Solution!
Start Your Own Business and Create Jobs
For all the people who are worried about a lack of jobs being created by companies and people with money, I’ve come up with a solution. Start your own business and create jobs yourself!
Let’s have everyone who is upset about companies sitting on cash create their own companies and hire people. They could take the money they have saved up (or borrow some if they don’t have any), use it to start a company and immediately start hiring employees. Yep, we could probably get millions of people back to work tomorrow.
Sure, there may be some objections at first. “I don’t know how to run a business,” or “I don’t have a product to sell.” Don’t worry about it! That’s just that crazy talk you hear from all those evil companies trying to turn a profit. When your only goal is to provide employment, you don’t need to concern yourself with those details.
Yep, just start hiring people. Maybe you’ll find something for them to do. And if not, who cares? At least you created jobs!!!
Hopefully you get the point. If that example didn’t illustrate it for you, I don’t know what will. A business must strive for profitability; it is the only way it can create jobs.
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