President Obama at a town hall meeting yesterday said it is time for American companies that are making money to start hiring workers. He is obviously ignorant to why employers hire workers. This is not a government job where you randomly hire people because you received a few extra bucks in your budget line item. Jobs are only created when the value of hiring an employee exceeds the cost of the employee hired.
In the real world, private companies only hire as a last resort or when they are confident that the growth of the company is dependent on a particular skill set not currently within the organization. And even then it may make better sense to source the work necessary until full realization of the revenue is delivered.
Obama and many politicians are basically academians and lawyers by “trade”. The lawyers are often not the ones that have created a successful law firm but rather lawyers that have spent their time sucking value from the economy (that’s unfair but felt good. There are many of them in the public sector). So their view on jobs is unrealistic. They demonize companies for making profits by saying now that you’re making money you need to hire workers. A totally ignorant statement.
We are in the economic mess today because we have too many people in government and congress that have this same “understanding” of business economics. It is not a difficult subject to learn but it makes a greater impact on your learning if you have had to run a business. That is why we should require of our politicians at least 5 years of experience in the private sector excluding law experience.
We are in deep trouble with an administration that has little to no understanding of what makes the economy and private business tick. Until we get rid of this president and all of these politicians in 2012 we are going to hear a lot more of this garbage from the president about how the private companies are not doing their part to help the American people. It is not the role of private business to hire people for political reasons. There has to be a solid business case. And that’s something this president knows nothing about…