Sunday, May 27, 2012

"Job Creators" Aren't Gods and Businesses Don't Create Jobs

Does this look like a god to you? This is the CEO of  Wal-Mart, one of the largest employers in the US.

Contrary to the way the term is intended to sound, "job creators" aren't gods. There are people who start businesses. There are entrepreneurs. There are businesspeople.

There aren't job creators.

People don't start businesses to create jobs. Hiring people is a byproduct, not the purpose of starting a business. People start businesses to fulfill a need or a personal dream, serve a niche and make a profit. An entrepreneur doesn't say to herself: "I'm going to create 100 jobs today." She writes a business plan and she tries to figure out how to make the most money -- while hiring the fewest people. The biggest expense of business is salary and benefits.

The only time companies hire is when the demand for a business's product or service is so high, that it needs to hire more people.

Unfortunately, the media, sorely lacking in business, financial and economics knowledge, fall for the "job creator" crap all the time. Keep in mind, your friendly political reporter is woefully uneducated about economics.

Let's all stop deifying business.