I keep hearing people in politics and in economics talk about helping small businesses create jobs I understan?
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I keep hearing people in politics and in economics talk about helping small businesses create jobs I understand why this is important but my question is how does big businesses create jobs if only small businesses is helped ? Does big businesses not need tax cuts to create jobs ? Please don't post answers like big businesses just ships jobs overseas because big businesses has created jobs for americans in the past. Also how does big businesses get consumer spending if only small businesses is helped ?
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Answer:
First off, the BULK of American workers work for Small Businesses. Think of average Small Business owner that Employs just a few people. They make around $100,000 to $250,000 per year off their Business. This is Their Income. Very Small Changes in Regulations, Costs and Tax Laws, have a Significant Impact on those Earnings. If they Employ 5 People at $50,000 per year, and they LOSE $50,000 in Revenue for the Year, due to Gas, Taxes, Supply Costs, etc.....which will they DO? 1) Keep all 5 employees and just do with $50,000 income? or; 2) Lay off a worker and Hope to Hire them back when things get better? I tell you, they Choose Option 1. Just like you and me, their Entire Life is Set up to make a Certain amount per year.... There are 2 ideas afoot: 1) The left that wants to Tax More to help Pay for their Increased Spending on Social Programs. And if they increase the COST of these Millions of Small Businesses to do Business, People will Lose Jobs. Also, it has been Figured out that By Dropping the Healthcare Insurance that Employers Provide, the PENALTIES that the Government will Charge them Saves about $10,000 in COST per Employee..... 2) The right want to LOWER Taxes....they Believe, whether true or not, that IF we were to LOWER the Taxes of the Business owner in my Example by $50,000 a year, they would be INSPIRED to Hire a 6th Worker. That is one more Person that is Paying Taxes on $50,000 of income, and spending that $50,000 on food and such, thus Growing the Overall Economy for everyone's Benefit. That is the 2 Philosophies in a Nut Shell....I personally believe in #2....but, MORE Americans would Rather have Option 1, because by Raising the Taxes, there is MORE Money for the Government to GIVE To Worker 5 that got Laid Off. I'm not sure WHY that is an Attractive Option, but more than Half of the COUNTRY prefer it. Thanks for asking.
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Other answers
It's a false choice. Large business supports most of small business especially in manufacturing. Without Boeing for example even though they might not grow exponentially in employee's their suppliers will. Every order for planes increases the demand Boeing has for its suppliers many of which are less then 100 employee's. The Boeing company may only expand 50 jobs total to meet that demand but across their supplier base maybe another 300. Economists are so lazy they miss this.
David LeGare
Large businesses don't create many jobs. They can't. Here's why: A big corporation has already done most of the growing it is going to do. It did crease a lot f jobs-- when it was a small, growing company And it does provide a lot of jobs -- the ones it created in the past. Here's an example t show what I men. A large oil company operates in a stable market. That means their is not going to be much of an increase in demand for oil in the future (in the case of the oil industry, demand is likely to fall over time). There simply isn't any room to grow -- and hence, little potential for job creation. By contrast, small businesses have a lot of growth -- adn therefore job creation -- potential. A small firm might double in size in 5 years. Exxon Mobil could not double in size in any amount of time because the market simply isn't there and never will be. So-- here is the policy question: where should taxpayer dollar (or tax breaks) go? Answer: into those sectors that will provide the most jobs for the money spent. That means small companies with growth potential. I'm NOT criticizing big business here. It's just that they already made their contribution in terms of new jobs.
Hobbit
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