Why Companies Hire
From abcnews.com regarding the “jobs proposal” working its way through Washington:
Obama’s proposal has an additional provision that would award $5,000 tax credits to companies that add workers in 2010.
Honestly, has anyone in this administration ever run a private company? I’m no economist, but my experience is this – companies hire more workers when revenue increases (i.e. growth). One-time minimal tax credits do not spawn hiring booms.
This fact puts the pressure solely on the sales department to find new prospects and close more deals in this depressed economy. No small feat.
Posted By Derrick Moe | Economy,Hiring | | 
Comments(1)
Thanks for posting this. I have run a company with 10 – 35 employees since 1997, and can absolutely affirm that no government tax incentive programs have, or ever will, cause me to hire. The only thing that makes me hire is (the hope of) better sales.
A similar pretzel logic idea exists in how the government promotes the SBA loan program as a “job generator” by claiming things like: we loaned a business $500K to buy a building. At an average of $40K/job, this loan will therefore generate 12 new jobs.
That’s right. If you push the speedometer, it makes the car go faster.