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View Diary: Why everyone's attempt to grade the speech gets an "F" (268 comments)

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  •  Businesses hire based on projected demand (0+ / 0-)

    They realize, as opposed to those who prefer simplistic economic models, that demand is part of a feedback mechanism. If they project that other companies are also going to hire in the near-term, therefore stimulating demand, they will be comfortable in hiring more workers.

    One night in Bangkok makes a hard man humble ... Murray Head

    by virginislandsguy on Wed Jan 26, 2011 at 07:50:10 PM PST

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    •  I agree, businesses can be motivated to hire more (0+ / 0-)

      more workers if they think there will be an increase in demand.  I also agree that the projection would be based in part on whether they see other companies(especially competitors and supply chain) hiring.  But they do not hire workers in order to increase demand.  That is like pushing on a string.

      The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt. Bertrand Russell

      by accumbens on Wed Jan 26, 2011 at 08:53:15 PM PST

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