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:
THERE IS NO WAY SOMEONE CAN PROOF 100% ANYTHING FOR THIS CLAIM. THIS IS BECAUSE GOVERNMENT POLICIES KEEP CHANGING AND WE NEVER GET TO KNOW IF ONE POLICY WILL FAVOR EMPLOYMENT OR NOT. BIG BUSINESS: big business have the advantage to give stable, standardized and constant employment to people (mostly we are concerned about citizen workers). Thus, it is easier to regulate big businesses since they are already "set up." Big business will only grow (and keep hiring) if the government gives favorable policies to them (tax cuts, tax on imports/exports, lowering min wage etc). Big businesses are more likely to keep unemployment low. The problem with them, many will argue, is that if they are not "controlled" eventually they will start treating their employees like robots. So they call for harsh laws to keep them in place. On the other hand, workers will want more and more benefits, and they will never be satisfied. If the government grants them these benefits at the financial cost of the big businesses, then the big businesses will no longer find it profitable, and they would move over to some other country (or simply do black market). ***************************************… SMALL BUSINESS small businesses help the local economy, and the overall benefits are nothing to compare for the big companies, which achieve much more. The good thing about small businesses is that they are helpful when the economy is not so powerful, because they encourage entrepreneurship, and stimuli for independence. But since they are small, and they are local, they usually are harder to keep an eye on, and enforcing laws becomes more difficult if the government is not strong enough. in contrast to big businesses, small ones are more sensitive to the changes in government policies and drastic changes in the economy, and they are also very unstable since they are very limited in $. This means that they have greater chances to go bankrupt. Many economist argue that helping the small business will only help those who benefit from the bankruptcies (since those who venture into a small business usually have no idea how to administer their money) ***************************************… both are essential for an economy, in one way or the other. I personally think the government shouldn't be helping the businesses at all, but rather, open better policies for businesses to flourish. Quick example of this is the minimum salary, if only businesses were allowed to pay people under the minimum wage, then those businesses could be saved, employment would decrease (at low wages, but hey that's better than having no job at all), and it would stimuli the economy by allowing the money to flow.
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