"Job Creation" is the notion that jobs
are created in response to some sort
of event or situation. Conceptually,
it's the proactive opposite of
unemployment. It's mostly a term
used for political rhetoric. For
example, a candidate might suggest
that a particular taxation or subsidy
program, or regulatory framework,
will create new jobs.
In a practical sense, industry only
hires more workers when necessary to
satisfy demand for its products or
services. They will hire only: workers
they believe can perform the required
work, and they will seek out the
lowest price for having that work
performed. Generally speaking,
taxation, subsidies, and regulations
don't alter the demand for goods or
services and have no measurable
effect on demand for goods and
services, hence it doesn't affect
unemployment rates. The argument
exists that policy changes that allow
companies to have higher margins
will allow them to expand (equipment
or personnel) in preparation for a
prospective future increase in demand
or new markets. In practice, in a
depressed state where that
prospective increase is not
quantifiable, profit-taking is more
prudent and what happens.
"Job Creation" presumably would
occur if: the government grew and
hired more people to operate it, or if
demand for goods and services grew
substantially. For demand to grow,
there would need to be a significant
base of buyers for those goods and
services. Job creation fails if the
principal consumers refuse to buy
because they have insufficient money
for them; further, if they feel
economic pressure, they borrow less.
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