Wednesday, August 21, 2013
Job Creation Requires a Big Stick
There is "faltering" economic growth at home precisely because companies won't part with record profits and hire full-time wage earners. If you want to see sustained economic growth, watch what will happen when companies are forced to stop these practices and start hiring people to work for a living wage.
This is where government regulation and policy could push companies with incentives to hire; tax credits would certainly help because we've seen how they have allowed companies to hire more Veterans. Punishing employers for relying on an unhealthy mix of part-time workers in order to pass the costs of health care and other benefits on to state and local governments would also be a great idea to pursue.
When a company fails to pay a living wage, the costs are passed on to whoever has to make up the difference with regards to health care costs and other benefits. We have a nation of starving children and we're debating a minimum wage hike? We're seeing an entire generation of kids with malnutrition issues that will affect them for decades and we're debating whether it is a good idea for a company to eliminate full-time positions and replace them with part-time workers? Please.
We cannot allow companies to reap huge profits while pushing their employees onto public assistance. Tax their profits if they behave in this manner and change their behavior.