Monday, July 18, 2011

Better Late Than Never

The Wall Street Journal online just posted a lead story titled "Dearth of Demand Seen Behind Weak Hiring". The opening paragraph states the following: "The main reason U.S. companies are reluctant to step up hiring is scant demand, rather than uncertainty over government policies, according to a majority of economists in a new Wall Street Journal survey."

Well, guess what? Over a year ago I conducted a Beyond The Sound Bite podcast interview with Bill Dunkelberg, Chief Economist with the National Federation of Independent Business. In the interview, Bill stated that sales, which are derived from demand, is the key metric the jobs creation engine in America - small business - uses when making their hiring decisions.

Therefore, contrary to those politicians who seek to gain political advantage by spinning the story to the uncertainty factor dealing with regulation and taxes as to why jobs are not being created, as my podcast interview from June 2010 and now the WSJ and those economists surveyed makes clear: the primary reason why businesses not hiring is "weak sales".

In these highly politicized times and when a premium is paid to complicating just about everything, the correct answer is often the most obvious. Just like deciding who should head the jobs creation effort in the US. Should it be a small business leader or someone from a large company who fires US workers and hires foreign ones?

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