Reply #22: Investment "permits" job creation, but it does mandate it [View All]

[unlawflcombatnt]

Again, investment creates NO jobs unless there is either anticipated demand or current demand for production. Businesses don't hire workers they don't need. And they don't hire them simply because they can afford them. They hire them only when they need them to produce goods that consumers are currently purchasing, or will be purchasing in the future.

If there is NO demand for production, either current or anticipated, investment alone creates absolutely NO jobs. Zero.

Money is invested only if there is current or anticipated consumer demand for production. Workers are hired to provide current or anticipated demand for production.

Do you know of a lot of companies that hire workers to do nothing? I don't know of any. Companies hire to produce goods or provide services. If no one wants their goods or services, they hire no workers.

Many factories sat idle during the Great Depression. The production facilities were already built. The workers were available. The factory owners had enough money to pay them, since they would work for very little.

But they didn't hire them. Why not? Because there was no demand for the goods the factories produced. Consumers didn't have enough to buy the products. Investing more money into the building of even more factories would have created absolutely NO new jobs, because there was insufficient demand for the production to keep the existing factories running. The only thing missing was consumer spending, and the production demand it created.

Without demand for production, there is no demand for labor to provide that production. More capital investment has absolutely NO ability to create jobs without consumer demand.