It's Still Demand, Stupid

I've been saying this for months and months....Now Brietbart picks it up.

Still no one seems to wonder, why would employers pay a new worker $40,000 to earn a $5,000 credit unless that worker generates at least $35,000 of revenue?

This is so economics 101 that the only reason the big shots haven't acknowledged it is that it's hard work (something none of them want to do) and will hurt.  Spending money we don't have has been a way of life for three generations and when Daddy says "no mas" the solution has always been divorce and a electing a new Daddy who will say "yes."  I remember way back when the government threatened Sears if they didn't grant credit to people on Welfare.  Who will they threaten now?  

1 comment:

Anonymous said...

Its not just at least $35K. There has to be a virtual guarantee that they will produce more than that. Breaking even is not an option and taking on significant risk of not making that money back is not an option.