In the worst economic recession since the Great Depression, Americans are questioning again, like the 1930s; how capitalism works in reality beyond written theories on paper?
These questions have lead to anger in the Global Recession from those doubts in capitalism. While at the same time during a recession, free-marketers create positive words to keep pushing their unregulated laizze faire market.
To push the idea of a market with no rules or laws beyond the company is like a job without rules.
The new positive term being used in the symbiotic relationship of economics, is the Job Creators, like Eric Cantor and John Boehner.
This made me question this new term, since the Job Creators are not a group that exists in a vacuum, but are dependent on other groups to create jobs in society. So, who are these other groups in positive terms?
The first are the Job Maintainers or consumers of the product-services. Job Maintainers are those that spend their money on businesses created by the Job Creators. If it was not for the Job Maintainers and their money, then no jobs. If they lacked disposable income, then Job Creators have to cut jobs.
The second are the Job Getters or the workers hired by the Job Creators. If Job Creators have extra money through tax cuts or demands for their product-services: They create jobs. These jobs are kept because the Job Maintainers keep spending or the Job Creator seek cheaper labor.
Job Creators are dependent on both the Job Maintainers and the Job Getters. As demand for more product-services from the Job Maintainers grow, Job Creators create jobs for Job Getters. Job Creators become dependent on the Job Getters to keep their Job Maintainers happy, through customer service or quality products. Simple right?
Problems arise, when Job Maintainers in a Global Recession, get no pay raise to compensate for the increases in necessities, like food and fuel that cuts into their disposable income. Then they do not spend, which makes the Job Creators cut jobs for the Job Getters to keep profits up for their shareholders; the third group in the symbiotic chain of economics – The Job Financiers.
Now, let us look at Job Creators, which there are two types.
One being the Founder that created the idea for the product-services: like Ted Turner with CNN, Steve Jobs with Apple and Bill Gates with Microsoft. Since Founders created the business, they have a personal interest to keep the company running and treat workers like their family, but in time they may sell their company or the Founder dies. Most Founders are reluctant to fire workers, because they know most of them.
The second Job Creator is the Executive that buys the Founder's company and focuses on making profit, but does not have the same personal passion or attachment to keep the business. The Executive will cut jobs, departments, sell assets and subsidiaries, to pay back their high leveraged loans secured for the merger. The Executive’s concern with profits, distances themselves from knowing company's workers, so they are easily fired. Which Job Creator would you choice to work for?
In short, the chain of economics between the Job Creators, Job Financiers, Job Getters, and Job Maintainers: Are each dependent on the other. Job Creators initially create the need for the product-service. Yet, depend on investment money from Job Financiers, and disposable income to satisfy their needs or wants from the Job Maintainers. Job Getters need jobs to make money to spend further onto other interconnected businesses, beyond the Job Creator.
We forget that our actions have reactions beyond our personal lives. It is great that free-marketers want to keep their ideology alive, when people have doubts. But creating positive terms like Job Creators, they fail to see that their ideals lack reality and are not alone in a vacuum. With the Global Recession creating less easy credit, because banks fear creating exotic devices to sell that debt onto the market. And as necessities go up and pay does not compensate for the higher costs of living; why then are free-marketers surprised when some doubt how capitalism works beyond their theories? Some Americans doubt any guarantees in the future, like their retirement.
In bad times, we all reevaluate our ideas and how they work in reality. Some change terms because of negative stigmas to keep people hopeful in the ideal, but others will see it as the same old ideology. If it is Job Creators today or Job Promoters tomorrow, capitalism and the way it works beyond theories on paper should be corrected. We should see how things are dependent on each other, for a better capitalism tomorrow.