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 Posted: Thu Dec 16, 2010 3:59 pm
So, I just recently read this article on CNNmoney.com and thought that it merited a bit of discussion.
Why Employers Won't Hire
For those of you that don't feel like reading, the tl;dr of it is that businesses have figured out how to maximize profits with minimal labor and labor costs so they no longer see the purpose of hiring new employees. Not even during the holidays, the biggest consumer season of the year.
Here's a lovely little quote from the article: Quote: "There's no question that employers are being cautious about hiring, especially full-time workers," said Sung Won Sohn, economics professor at Cal State University Channel Islands. "They're not certain the recovery is for real so they're taking their time. And because of productivity gain they don't need to hire as many people." 
The above line really irks me and just makes this whole situation all the more frustrating. Don't these businesses realize that the economy isn't going to improve unless more people have jobs and are making money to actually spend on said business' products? Economies aren't one sided, the fewer people that are employed the fewer people that are spending, the fewer people spending, the lower profit companies make.
Economies are like organisms of or even more accurately, ecosystems. If you remove one organism from the ecosystem, or one factor out of the equation the whole thing slowly starts to die.
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Posted: Thu Dec 16, 2010 5:57 pm
I have no idea what is up with the business world these days. Like why doesn't the Oreo company make a box of assorted Oreos? Businesses have NO idea how to run themselves, and it is ridiculous. In the business world, if you can't play by the rules or be efficient, the business will die. Plain and simple. Those business people need to wake up and realize they will not survive unless they start hiring more workers.
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Posted: Thu Dec 16, 2010 7:32 pm
I agree that companies should hire more employees, but I can kind of see their side of it. Yeah, they won't make as much profit, but it also means they don't have to pay as many workers for their companies.
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Posted: Fri Dec 17, 2010 12:32 am
Team-Switzerland00 I agree that companies should hire more employees, but I can kind of see their side of it. Yeah, they won't make as much profit, but it also means they don't have to pay as many workers for their companies.
But with fewer people earning in-come their consumer market shrinks and so their profits will continue to shrink.
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Posted: Sun Dec 19, 2010 6:43 pm
Renkon Root Team-Switzerland00 I agree that companies should hire more employees, but I can kind of see their side of it. Yeah, they won't make as much profit, but it also means they don't have to pay as many workers for their companies.
But with fewer people earning in-come their consumer market shrinks and so their profits will continue to shrink.
Not necessarily. If the general public and employees buy the said-business's products, wouldn't their consumer market be fine?
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Posted: Sun Dec 19, 2010 11:32 pm
Team-Switzerland00 Renkon Root Team-Switzerland00 I agree that companies should hire more employees, but I can kind of see their side of it. Yeah, they won't make as much profit, but it also means they don't have to pay as many workers for their companies. But with fewer people earning in-come their consumer market shrinks and so their profits will continue to shrink. Not necessarily. If the general public and employees buy the said-business's products, wouldn't their consumer market be fine?
However, the consumer public and the employees are a smaller group and so the best that could happen is the profits would level out at a certain point and neither climb not drop. In short, the economy would stagnate and there would be no progress.
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