Quote:
Originally Posted by scottw
NYT
This breakneck pace can be partly attributed to strong productivity growth — which means companies have been able to make more with less — as well as the fact that some of the profits of American companies come from abroad. Economic conditions in the United States may still be sluggish, but many emerging markets like India and China are expanding rapidly.
again, why would you hire employees that you don't need? in any business???
if you can fill current demands with X number of employees...is a tax credit going to incentivize you to increase your number of employees to X+10 to fill the same demand????? or are you assuming that demand automatically increases with an increase in employees.....or is hiring just the patriotic thing to do?
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It's an incentive to increase innovative behavior.
Basically, you can't automate everything and usually automation requires an existing and proven process.
If I'm trying to invent a new product or revolutionary manufacturing process the additional labor burden required is a large part of the overall investment. If the investment costs are too high relative to the benefits I won't take the risk.
Many companies today are still profitable because they've cut their cost structures to the bone, but their people don't have the bandwidth for anything other than short-term profit motivated work. Sure, they can produce today's product more efficiently, but are they prepared to compete 5 or 10 years down the road?
The bottom line is that people are the lifeblood of any innovative organization.
-spence