Home > Main > Business Hire when they are Swamped with Demand, Part 20

Business Hire when they are Swamped with Demand, Part 20

January 10, 2012

Business hire when they are swamped with demand. It’s a bit tiring to say this over and over again in many different ways, but for some reason this isn’t obvious.

Here’s more evidence demand for products is what causes businesses to hire from the Business Insider.

CHART OF THE DAY: It’s Pretty Obvious What’s Driving Unemployment

Here is what doesn’t cause businesses to hire:

  • Tax Cuts
  • Less Regulations
  • More Credit
Demand for their products cause businesses to hire workers.
Categories: Main
  1. Dunce Cap Aficionado
    January 11, 2012 at 9:08 am


    What are your views on how a tax cut like Mosler’s proposed FICA suspension would/could affect the deleveraging process and ultimately demand? (I am assuming your above bullet point with ‘Tax Cuts’ refers to tax cuts to businesses as opposed to consumers)

    Best regards

  2. Tom Hickey
    January 11, 2012 at 3:03 pm

    Supply siders are never, ever going to accept the demand side arguments, no matter how convincing they are in terms of analytics and empirics. Doing so would require their becoming demand siders and all that entails.

    • TC
      January 12, 2012 at 8:28 am

      I totally agree Supply siders won’t change their mind.

      But I find Supply Siders have dominated the discussion for so long, the basic link between demand for products and hiring is no longer common knowledge.

      Even people like Philip Plinkton don’t get it – read his latest over at Yves. And PP is way smart and well informed.

      So these posts are just to keep it fresh in our minds what’s important. I really think the link between hiring and sales is a winning political meme, and if we’re pushing it, we’re the winners.

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