Econ 101

In keeping with the GM theme from yesterday, I don't think the schools teach enough economics. The whole idea of a company is to make money. That is an idea that some how gets lost on the average guy. A company is not a health care provider, not a daycare provider, not an alcohol rehab center, not a family support center - companies exist to make money. Companies make money by offering the best possible product or service at the lowest possible cost. Companies offer the best possible products and services by hiring the best possible people with the most beneficial compensation package for each side. If the labor market is tight – like for high skilled workers - the worker can demand more. If the labor market is bloated – like low skilled uneducated workers – the worker is at the mercy of the employer.

If a company is not making money, it’s not hiring any workers. If a company is not hiring any workers, there will be no tax base. If there is no tax base, Libs cannot confiscate workers’ wages to pay for “Piss Christ.” Conversely, more money means more jobs, more R&D, more and better products and yes dear Libs, more taxes. I had a conversation with an old fellow about oil company profits. I said it's supply and demand. He said it's outrageous greed. I said the company had a duty to shareholders to earn as much profit as the market would bear. Besides how much does a refinery cost to build and run? He said it ought to be against the law to earn such a large profit. I said well then it ought to be against the law to lose money. And when we do that, capitalism is dead. But the really sad thing about worker company relations is that you can ask the average guy making $12-$23 an hour what he thinks about the people paying him and I'll bet better than half have nothing good to say about the company.