Creating Jobs in 2017
Ever since the industrial age, politicians have made tremendous job creation promises just to get elected. Some of them followed through on such promises, yet many fall short of their promises.
We could argue that many didn’t have a clue what they promised before they got elected, but truth is: Unless you’re looking to drastically grow the size of the government by hiring thousands of people, you as a politician have little control as to how many jobs become available.
You can offer businesses incentives which in return will encourage them to grow in your district, yes, but you can not force them to hire more people. It simply does not work that way.
A search engine marketing company from Kelowna BC has been helping companies all over Canada to grow by getting them to rank higher in the search engines. In an interview, Konrad Braun – owner of the company – was recently asked if he believed government grants to make a big difference in a local economy. Braun responded by saying “it can definitely help companies to expand quicker and hopefully grow into other markets, but it isn’t a guarantee!”
He went on to explain how – ultimately – each company can’t sell products or services unless there is a need for them. So – unless companies use said government grants to expand their reach – it is hard to say whether or not the government or the taxpayers will ever really get a fair return on their investments.
Yes you can stimulate a fake economy, but you can not force it to truly grow by injecting massive amounts of capital into it.
A good example of this is Tesla, Inc, an american based electric automotive company. The US government injected a ton of cash into the company, but had it’s customer base not grown dramatically after the fact, the government would have lost those investments.
Because Tesla grew so much, it was able to not only pay the government back every penny with interest, but also provide thousands of jobs and pay millions of dollars in taxes each year.
So next time you hear a politician say he or she will create hundreds or thousands of jobs, ask them how they plan on doing it. Unless they are expanding their government drastically, they can’t and certainly shouldn’t make sure bold promises.
They can make predictions, sure. Promises they can not make however – unless they are setting themselves and their voters up for massive disappointments.