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1 mr.fusion  Wed, Feb 13, 2013 1:44:09pm

Are you telling me that when companies sell more goods they have to hire in order to keep up with demand?

What are you, a communist???

2 calochortus  Wed, Feb 13, 2013 2:08:01pm

I actually have a relative who believes that if the government would “get out of the way”, companies would make more stuff, stores would buy it, and then when people saw all the cool things they could buy they would work harder and make more money so they could afford it-and that’s how the economy will return to health.

I did ask him who was going to hire all these people who suddenly were tired of sitting around and he was a trifle unclear on that.

3 aagcobb  Wed, Feb 13, 2013 3:12:33pm

Keynes was right? Whoda thunk it?

4 Mich-again  Wed, Feb 13, 2013 4:45:25pm

Corporate taxes hit a record high in 2011 thanks to the provision called bonus depreciation which allowed companies to write off 100% of capital investments in 2011 instead of spreading the depreciation over years. That helped create huge profits and reduced the tax burden of corporations, but it didn’t increase hiring. Like this article says, companies hire when they see more customers and demand on the horizon. Just throwing money at businesses will not lead them to run out and hire people. This is such a basic point it’s hard to understand why anyone would even argue it.

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