, like washing the roads, cutting trhees, saveguards....
Published in United States of America - Financial analysis - 23 Dec 2016 15:36 - 4
Here’s Why
A pretty basic concept of business is the Supply - Demand cycle. In essence, Demand drives prices up, while Supply brings prices down and creates competition. Consumers always control Demand.
Now imagine you’re extremely rich. You can build a Safemart in a small town of 1000 people. There’s no other competition in town, so you decide to go ahead and build there because the demand is very high. Don’t forget, you must hire employees to meet the demand your store will face. Let’s say you hire 20 employees to meet the consumer demand of the town.
You didn’t create 20 jobs - the town did. If there was never a demand for that Safemart you just built, no jobs would have been added. However, since there was a consumer demand for a store (which requires employees to run it), jobs were created. You were simply the first one to use that demand to your advantage.
Now let’s say that 10 years later, there is no longer any demand for a Safemart. Your store goes bankrupt. What happens to all those jobs?
Thus, rich people don’t create jobs. Rather, it’s the consumer that really creates jobs, and keeps them there.
Why would a rich company owner want to build a Safemart where this is no demand? If there was a smaller demand for a Safemart, you could have built a smaller store with fewer employees. How do you think someone who owns a company got rich in the first place? Because of money earned off of the consumers.
While the rich are definitely involved in the process of creating jobs, they will only add jobs to an economy when there is a real reason to do so: such as an increase in consumer demand.
And that, my friends, is why you directly influence the economy and job markets, even if you do not consider yourself to be rich, or have any employees. Because you are a consumer.
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Beto SongEl Tito HelamanComments (4)
So if the rich spend is own money for create is own company for have is own employers, was a lie, because the city is who built it? ¬¬. Them for what you work for rich people?. Work for the city , like washing the roads, cutting trhees, saveguards....
, like washing the roads, cutting trhees, saveguards....
i saw yt video with same title
Hmmm...thinking #TimTheTatman
hi Bio