Pelosi says that unemployment checks fastest way to create jobs

It's awfully easy for you to sit there and tell me we're making a bad decision, Major. Too easy.

Why hire anybody if we've the staff to get the work done. True, we'll be working our collective butts off but we're family more than an incongruous mix of employees. So patience and the hard work will have its paydays.

All though I never mentioned tax cuts, it's a stupid idea to bet on them. I also believe it's stupid not having a cushion. I sacrificed to have a year and a half cushion for my personal life, why not in business? If I can get the work done without going crazy, well by god, that's how it's going to be. My assistants were a luxury. A very missed luxury, but a luxury none-the-less.

Is there any way you can run your business your way without telling me we're running our business incorrectly? True, I'm particularly bias towards my boss' way of doing things, but it has worked well for us. For 10 years I've been working from home because of her. And you know what, I trust her decision way more than a Major in Clutch's army. (no offense)

I always appreciate your thoughts, but I'm not buying...all of it.

 

Hey, Major, I agree with you.

 

To clarify - I'm not trying to criticize you or your business. Especially in the case of small businesses, we don't make all decisions based on a purely economic motive, and there's nothing wrong with that. I'm just pointing out a general rule that applies to all businesses. Hiring is ultimately an economic decision - the net revenue generated from hiring someone must pay for itself (short or long term, depending on the specific business) to justify the hire. If they do, it makes economic sense to hire someone and everyone benefits (the employee and the business). If they don't, it doesn't make economic sense to hire.

That goes back to my original point responding to the initial post in this thread - income tax rates have no material impact on that decision. In the long run, they can because businesses are looking for a rate of return on the risk they take, etc. But in the immediate individual decision "do I hire another employee", economically, there's a definitive correct or not correct answer that is not correlated with tax rates. It's entirely based on an increase in marginal revenues (and associated marginal costs like benefits, any additional office space depending on the industry, training, etc).

In your case, it sounds like an extra employee would reduce your workload, etc. That's great and may ultimately drive your decision (I know in our business, it certainly does). But from a purely finance perspective, it doesn't affect what is the most efficient decision to maintain profitability. So when you take it to the macro level, the economics of hiring is based on increased demand - not on tax cuts or things like that.

 

Stop it, Sam. Everyone knows that nothing is as powerful as donuts.