Wednesday, February 3, 2010

Another possible way to stimulate job growth

Just to take the previous post a step further, wouldn't it fix a whole butt load of problems if government were to mandate that small business hire people if they earn profits above an arbitrary threshold?

For instance, its really not unreasonable for a family owned polymer-injection business, or a start-up pinking enterprise to be required to bring on another worker if that business makes more than $20,000 in profits, or they could be required to take on a migrant worker if they pass a $10,000 profit threshold.

This is not a bad idea.


  1. I just started reading your blog, so I can't tell if you are being serious here. I am going to hope your being extremely sarcastic. To force a business to start hiring people once they hit an arbitrary level of profitability is probably the stupidest thing I have ever heard.

  2. Stimulating job growths requires serious thinking outside the box.

  3. Serious thinking outside the box is something that government bureaucracies aren't good at. There is no better way to facilitate and entrench "inside the box" thinking than to enshrine it in federal policy.

    I own two small businesses, and I refuse to hire employees. The regulatory, taxation, and liability overhead of hiring employees is so significant already that this option is completely off the table for me. I have owned and run businesses where I hired and managed up to 70 employees, and now I work within the framework of a single member LLC.

    Here are some out of the box ideas.

    1. Get rid of the Department of Workforce Services and all of the draconian employement laws that they enforce.

    2. Make employees pay the entire burden of social security and medicare instead of splitting this cost with the employer. By sheltering citizens from the true cost of entitlements, enough people will be stupid enough to believe they are a good idea. Punishing employers for creating jobs with a tax that they wouldn't have to pay otherwise, doesn't encourage job creation.

    The other weakness of your idea is that the tax code favors a small business's ability to determine their level of profitability. If there were an arbitrary threshold where I would have to start hiring people, I would increase the number of write-offs I take for my business, and I would never make more profit than the threshold.

    I am curious if you are small business owner?

  4. I'm not, but my collegue Speng Musselman is.