Businesses hire only when needed


Like so many of Donald Trump’s initiatives, his plan for a new tax overhaul is based on the flawed idea that the more money big business has, the more money it will spend on job creation.

People should understand that companies do not hire based on how much money they have. They hire employees based on need. As a rule, corporations hire just enough employees to get the job done. It’s simply the best way to make money. If a company hires too many people, they will outstrip demand for their products or services and in the case of manufacturers they may be stuck with more goods than they can sell.

In short, companies will hire the same number of people even if the government gives them enough tax breaks to double their profits. This is true for demand that does not justify buying more plants and equipment.

All regulations and tax increases should be carefully thought out and not made for only a small benefit that does not justify a large cost to those taxed or regulated.

We should not, however, follow the rule that the more we take away from the poor and the middle class to give to the wealthy and corporations, the better things will be for all of us.