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View Diary: Unemployment and underemployment rate among college graduates shows the problem isn't lack of skills (78 comments)

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  •  They're not hiring (4+ / 0-)
    Recommended by:
    ebohlman, Not A Bot, Sparhawk, O112358

    ...because there's no need for more workers.

    Suppose your factory can make 10,000 widgets with 10 workers, and sell 10,000 widgets. Suppose you hired ten more workers, and made 20,000 widgets - but people still only want to buy 10,000.

    Businesses don't hire somebody just because they have an extra $50k lying around. A lot of political talk is based on this wrong idea.

    In fact, a business with no money at all might hire somebody for $50k, if they were sure they could get $100k of profit out of his work. That's why banks lend to businesses.

    (Except when they don't.)

    Early to rise and early to bed Makes a man healthy, wealthy, and dead. --Not Benjamin Franklin

    by Boundegar on Mon May 27, 2013 at 05:43:22 PM PDT

    [ Parent ]

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