A Simple Solution to Create Jobs

There is one easy and sure fire way to create jobs: give businesses a reason to have a positive economic outlook for the next 2-3 years. If businesses believe the future is positive, they will prepare for an upturn.  Woe to the company that misses the opportunity to participate in a growing economy.

On the other hand, businesses will hunker down by minimizing expenses and hoarding cash if they believe future economic outlook is negative for the next 2-3 years.   No business wants to have high expenses and high debt when the economy turns negative.  

So far, the actions of the U.S. government have created the perception of a negative economic future for many businesses.  Therefore, businesses are minimizing expenses by not hiring and generating record profits.  If the goal is to create jobs rapidly, government will need to quickly change the perceptions businesses have about their economic future.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial advice. Please consult a professional advisor.

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