Getting more out of job creators

Probably the best and most successful way to get more out of the job creators, is to convince them that they can make more money.

The Time for Progress: Dentacare, Pharmacare

Let us assume that we have created an economic climate of growth and employment, where there are more people working than ever before. Deficits have been eliminated, and we have a plan to eliminate the debt (which is also important. All it takes is a few economic downturns before the debt burden becomes too great on the nation. This in turn will discourage business and the country will end up digging a deeper and deeper hole trying to stimulate the economy with little success. We need to make sure we have the room to endure downturns.) Things are looking good, and current expenditures are sustainable. It is time for progress.

I know a lot of Liberals and NDPers would like to progress faster than this, but I believe that progress at too fast of rate is self-defeating. Everything ultimately ties back to GDP and the economy. Progress too fast, and the programs will be unsustainable and the case for cuts will be made. To progress without careful consideration of the economy is like borrowing money to buy a new vehicle without having any job security. The case for certain programs (especially those that better help people provide for themselves, or help those that are unable to) can be made all the time, but the “nice to haves” need to wait until we can afford it.

The first “nice to haves” I would like to see implemented are Dentacare and Pharmacare. These types of programs would benefit almost everyone, and not just a select few. It would be nice to know that getting sick and needing prescriptions, or needing to fix aching teeth, wouldn’t mean less disposable income. This could also give Canada an additional competitive edge to employers.

Progress is good, but we have to make sure that it can be sustained. Otherwise we become our own worst enemy.

Empowering workers: Unemployment and Jobs

The best social policy is one that helps someone provide for themselves through employment. People need jobs, but they need good paying jobs. Trying to convince private sector employers to pay good wages if they don’t feel the need to is almost impossible, but there is a way to do it.

We need to strive to obtain a low unemployment rate by creating private sector jobs. To create these jobs, the private sector needs the confidence to invest in Canada. When big businesses are making decisions, the accountant takes all costs into account (except, of course, Conservative accountants) before they determine where they intend to set up shop.  Hydro rates, taxes, labour prices, social programs (as benefits that they might have to provide employees otherwise, such as healthcare), and the job market all come into play. Businesses that are already set up  in Canada (factories for instance) might be willing to absorb higher costs to avoid start up costs elsewhere, but those that are planning their start up aren’t going to invest in Canada if they see it as being more affordable somewhere else. This is an undeniable fact in the way many businesses make decisions. Everything is a number. To attract more employers to Canada, there has to be some kind of competitive advantage. Right now, some of Canada’s advantage is the fact that our banks are solid, but working to foster job creation to reduce unemployment will best empower workers.

By fostering job creation, unemployment rates drop. As there are more employers looking to hire than there are people looking for work, employers will have to pay higher wages and more benefits to attract employees. It makes sense though, doesn’t it? If you really need milk but there’s only one store that sells it, they could charge you more because the market would favour the retailer. We want to create a job market that favours workers.

The second component to this is to anticipate for skill shortages and take measures to accommodate for that, at least to a degree. An inefficient job market will have more positions to fill than there are people to fill them, but the skills of the unemployed won’t match the jobs that are available. Liberals can help by supporting training programs that will help meet demand. In many respects, lower unemployment will make it so more employers will be willing to (or forced to) advance and train employees because it will be harder to find people to hire with the skills needed.

Taking measures to support job creation and reduce unemployment is the best way to guarantee prosperity. With new business in Canada and more people employed, government revenues will go up, deficits will go down. Once we have finances in order, we will be able to implement social programs  and won’t face as much criticism in doing so.

 

Hire and fire- Bad planning or heartless?

Being a business owner, good business decisions require foresight. Good entrepreneurs have to know where they’re going, how to get there, then anticipate what challenges might come up. Government needs to run the same way, but under the Conservatives, it hasn’t been.

Since 2006, Stephen Harper has added 33’000 employees to the federal payroll. The 2012 budget cuts 19’200 of them, all in the name of austerity.

A good entrepreneur will not hire new employees, only to lay off 58.18% of the new hires in a few years time because their employment is unsustainable. A good entrepreneur would not have hired these employees in the first place because the need to lay them off in the future would have been anticipated.

Reductions in the government payroll could have come by slowing the rate of replacement of retirees, but Harper et. al hasn’t opted for this approach. Perhaps that wouldn’t have given them enough of a power trip, or exacted enough revenge on those that often oppose them. I don’t know.

It is impossible for government, or business to predict everything but poor predictions that result in the layoff of 58% of new employees is a bit over the top. That’s just bad planning, or heartless. You decide.