28 Aug 18
Originally posted by @wolfgang59They buy a new 1000000$+ crane, employ a new operator and rigger. Else where in the business the pressure increases on dispatch, payroll, middle management, mechanics, anyone of these areas may also reach a tipping point and require extra personnel.
Lets take your assertions one by one.
Imagine a business, your choice - any industry, any size.
And its costs are suddenly reduced.
Explain to me how that creates jobs.
As a for example.
28 Aug 18
Originally posted by @wajomaBrilliant.
They buy a new 1000000$+ crane, employ a new operator and rigger. Else where in the business the pressure increases on dispatch, payroll, middle management, mechanics, anyone of these areas may also reach a tipping point and require extra personnel.
As a for example.
That is why you don't have your own business.
Why does the business need a new crane?
It isn't because it has more money is it?
28 Aug 18
Originally posted by @wolfgang59They need a new crane to satisfy customer demand.
Why does the business need a new crane?
The extra cash makes that new crane possible.
Originally posted by @wolfgang59Do you think your snark means anything to me, it's actually a cover for your lack of confidence, a cover that I see all the way through.
Brilliant.
That is why you don't have your own business.
Crane hire is an area I have some experience
28 Aug 18
Originally posted by @wolfgang59If there are X number of cranes available in an area and they are of X size this may limit the viabilty of a project, it may not happen or it may have to be at a reduced size.
Ah .. so it is customer demand that creates the new jobs.
And I thought you said it was reduced costs.
When a new crane enters the market that increases availability and capability, thus allowing new projects to cross the go/no-go line.
Let's also consider the thousands of hours that go into creating the crane equalling far more jobs than an operator and rigger.
28 Aug 18
Originally posted by @wajomaWhat demand?
They need a new crane to satisfy customer demand.
The extra cash makes that new crane possible.
Are you suggesting there are businesses who cannot
fulfill customer demand because of lack of cash?
Surely they can borrow money in a capitalist economy?
28 Aug 18
Originally posted by @wolfgang59There is a project that cannot go ahead because there are not sufficient cranes or cranes of sufficient size.
No.
Increased supply will depress prices leading to deflation and job losses.
A crane that answers that demand does not cause over supply.
28 Aug 18
Originally posted by @wolfgang59I know (this is not a suggestion) that there are businesses that cannot fulfill the wishes of every client. I know (this is not a suggestion) that at times businesses must pass up jobs because they do not have the necessary equipment, this is not an uncommon occurence. I know (this is not a suggestion) that an investment of several millions of dollars is not a decision made lightly, that there is a line, a cost/benefit line and debt (a cost) has to be factored in, that risk has to be factored in. That if a company can buy a piece of equipment without the extra cost of finance that might be enough to put the venture on the favorable side of that cost/benefit line.
What demand?
Are you suggesting there are businesses who cannot
fulfill customer demand because of lack of cash?
Surely they can borrow money in a capitalist economy?
28 Aug 18
Originally posted by @lundosLundos, demand is always there. At any instant in time there are millions of projects being proposed, projects of every size imaginable from hundreds of dollars through into the billions of dollars. For every one of those projects a line is drawn, on one side the project is sound and goes ahead, on the other side of the line the project is shelved or binned. One very important factor, believe it or not, is the cost of a project. With any reduction in cost a couple more projects make it over the line, given the number of projects proposed this is significant.
How does a cost reduction automatically increase demand?
The demand is there, it is always there, humans constantly strive to improve their life, but costs can put things beyond reach. A minor adjustment in the punishment that is tax can allow projects to go ahead that benefit thousands og humans.
28 Aug 18
Originally posted by @wajomaWait what? Higher demand is always there?
Lundos, demand is always there. At any instant in time there are millions of projects being proposed, projects of every size imaginable from hundreds of dollars through into the billions of dollars. For every one of those projects a line is drawn, on one side the project is sound and goes ahead, on the other side of the line the project is shelved or binne ...[text shortened]... t in the punishment that is tax can allow projects to go ahead that benefit thousands og humans.
Lets e.g. look at something everyone need - clothes. And lets look at different companies like Gucci (high end) and Zara (vertical retailer). Both are working on a global scale. A cost reduction - without a price reduction - will not change the demand for either company's product portfolio. It will just increase margins.
Most cost reductions are either saved (e.g. for future possible reduced demand), used to pay debt, used to buy back stock, returned to stockholders as dividends, payed as bonuses or invested (which could be buying a competitor and reduce staff there due to 'synergies'😉, etc. So multiple possibilities and most of them doesn't include a return to society as a whole or will increase demand.
28 Aug 18
Originally posted by @wajomaOf course cost can put things beyond reach. Even without taxes at all.
The demand is there, it is always there, humans constantly strive to improve their life, but costs can put things beyond reach. A minor adjustment in the punishment that is tax can allow projects to go ahead that benefit thousands og humans.
Benefits from taxes includes infrastructure, education, upholding laws, and a lot of other things that companies need too.
Are you suggesting no taxes or a flat tax rate?
28 Aug 18
Originally posted by @wolfgang59It is very easy. When costs are reduced products which might otherwise not be profitable become profitable. Ventures which are taken employ people directly and indirectly. The government gets its cut via taxes which pays for other things.
Lets take your assertions one by one.
Imagine a business, your choice - any industry, any size.
And its costs are suddenly reduced.
Explain to me how that creates jobs.
People respond to decreased costs all the time. I know many people who move from near me (Long Island, New York) to lower tax areas like Florida and North Carolina.