billddrummer

Liz Ann Sonders: Job Gains Possible by Year-End

Excellent article, Mr. Mauldin.

Thank you for providing hard data for what is turning out to be a seemingly intractable problem--how to put enough people to work to pull the economy out of its doldrums, yet not bankrupt the Treasury in the process?

It seems clear that only massive government intervention will make a material difference in the job count, yet no one wants that (including me). I contend that the government is already far too intrusive, and more powers begat more intrusiveness.

But for private industry, the only reason to hire is that the new employee will produce more work than his or her cost to hire. Until profit margins recover, hiring workers will continue to be an expensive proposition.

And without top-line revenue growth, there's little incentive to hire. Yet without expanding employment, top-line growth will languish.

An economic conundrum: Companies won't hire because they see no revenue growth, but unemployed workers can't spend because they aren't working. And that reinforces the companies' stand against hiring.

Again, thank you for the article, and the lively discussion it spawned.