I know it seems like a silly question, but it goes to the heart of why the Liberals cause the economy to tank every single time they take over. Without exception.
So what is a job? It’s not simple. A job is when a business hires a person to fulfill a business need. What is a business need? It is a lot more complex. A business need is a task a business needs completed. This task could be simple, or difficult. It could require a new skill, or just a new person.
For example, let’s imagine a simple business with a boss and all of his construction laborers. In this example, the boss does his managing of the job which takes 45 hours a week. However, the boss also is running the office, making copies, shipping paperwork, taking phone calls… This portion of the job takes 35 hours a week. Assuming a 40 hour work week, the boss himself is working 2 full work weeks every week.
It’s important to understand that every person has a usable number of hours every full week (including saturday and sunday). Let’s just say that this number is 60 hours a week. After you take out sleep, meals, bathroom breaks, commuting / travel, and other miscellaneous but necessary activities there are 60 hours a week. And at some point for a task that is difficult, a task’s efficiency starts to drop after a certain amount of time. Let’s just say this number is 40 hours a week.
Back to our original example, not only is the boss killing himself trying to do everything, but he’s doing it inefficiently using a lot more time than he has. The solution? Hire a secretary to fulfill his business need. One person, one job. This one person performs an act that makes the entire business run better, more efficiently, during normal business time, and even though this person is paid with money, probably saves money for the business.
This is the perfect example of a Job that fulfills a Business Need. Furthermore, this is all done with “Real” money. And no, not all money is “Real.” Only money earned and traded for jobs that are from business needs, from people to people, and business to business is real money.
Go back to the example. Say the boss only manages for 20 hours a week, and organizes the office for 20 hours a week. Does the business need a secretary? What happens if the business doesn’t need a secretary, but hires the secretary anyway? Does the business prosper? Do the customers get the best deal for their money?
Nothing good comes out of hiring someone the business doesn’t need. It’s called “Busy-Work.” That person isn’t actually adding anything to the function and efficiency of the business. While he may be paid with money like the real secretary, the money to pay him isn’t magicked into existence. It comes from somewhere, most often, from the customer. But since the Business isn’t actually offering a more tangibly more expensive good or service, the customer is buying the same thing for more. One of two things will happen. Either that person will bear the cost and have less to spend elsewhere, thus damaging the economy. Or that person will choose another contractor and thus damage the economy. Anyway you cut it, hiring someone the business doesn’t need doesn’t just hurt the business, but it hurts everyone.
Now, let’s take another example. How about a Government entity artificially lowers the Full Time Week from 40 hours, down to 30 hours. And since the penalty for having a part time employee work 30 hours is huge, all the part time employees are cut to 20 hours just to give a safe cushion against accidental overage.
Because a full time workweek is effectively now 20 hours instead of 40, overnight you’ve doubled the amount of jobs in the economy! This is a good thing, right? Nope. The amount of work one person can do in an hour is called “One Man Hour.” This is ignoring the differences in work between an Engineer and a grocery bagger. If you add up all of the jobs and the amount of time they would take, you’d have a certain number of Man Hours that the current economy requires.
Cutting the Full Time Workweek from 40 hours down to 20 doesn’t magic more money into the economy. In a real economy there is only a finite amount of money, and there is only a set number of Man Hours required. The money to man hour ratio doesn’t change. The economy isn’t more prosperous just because you artificially cut the Unemployment rate down. Since the workers are now working less, they are not as efficient as if they had a full time job.
So not only has the money to man hour ratio not changed, but worked efficiency is down and the economy is worse yet!
Fortunately for us, it won’t get too much worse as long as the US Population isn’t growing. Or if 30 million illegal immigrants are about to be legalized. Either of those would really put the final nail in the coffin of the American Economy.