Article from: Australian Job News
The following was released by The Foundation for Job Creation:
When asked; "What is Job Creation", how do you answer? When we interview
people randomly, most people gave our organization a blank stare. Too often
people come to the Foundation for Job Creation for a job. However we don't
provide jobs, we just try to support the ideas that create jobs. These ideas
lead to real innovation. The kinds of Innovation that change and employs the
world eventually. The Foundation for Job Creation, offers
the following information to clarify to the general public, a definition, as
to what exactly job creation is. The Foundation for Job Creation presents four
basic definitions of methods for creating jobs in a free market system . . .
for creating jobs in places like Australia.
Entrepreneurs and government act socially responsible every time they employ
someone. They are dependent on each other to be in balance. Too much
influence of either side is detrimental and will cause the system to stall and
spin in a tethering, out of control way, until properly realigned.
The definitions of job creation are listed from the easiest method (no. 1) to
the hardest method (no. 4). The first two methods are out of your control
unless you hold an elected or appointed position in the government, number
three and four are in the control of the free market system (that means you).
1. Job Creation by Government spending/stimulus: The Government can stimulate
job creation when it invests in projects that improve or create new services.
These activities could include releasing contracts to the private sector for
infrastructure, defense, engineering, justice, etc. Other ways that the
government creates jobs is by issuing special grants for privately run
programs. These are often for special studies and research. Grant receivers
do employ people. However these grants are often connected to special favors
called earmarks. These seemingly good gestures destroy independent innovation
that is developed by unconnected science communities and can cause
discouragement to innovate by others.
The government also often decides to grow itself and hires new government
employees. Some people argue that the bigger government gets; the more
overhead private taxpaying industries must pay to support the costs of
government. We vote for people to make these decisions for us. It might be a
good idea to pay attention to the details in Parliament.
This is the easiest Job Creation method because the government seems to have
an endless supply of tax payer's money/credit and Parliament feels no pain in
their own wallets.
2. Job Creation is influenced by legislation and monetary policy: A change
to monetary policies, tax incentives and changes in regulations effects
employment. The government needs tax revenues and walks a fine line trying to
measure the complicated causal effects of their actions. Good intentions can
stray an economy as the actors in the theatre of the economy react to a
multitude of conditions at once. These rules and regulations are what
established businesses love or hate. The more often there are major changes to
tax structure and regulation, the more often there are major movements in
rates of employment, either job creation or job destruction. Too many changes
can hurt an economy and too little can damage an economy. Again, it is a
balancing act that is becoming more and more difficult with the existence of
special interest lobbyists, non-profit Political Action Committees with noble
concerns over social issues and the environment. Government actions do matter
3. Job Creation a market share approach: Job creation can occur when the
unemployed become ambitious and start their own business in easy entry
industries and markets . This is usually accomplished when an unemployed
person turns into an entrepreneur and goes into business to compete in the
industry they were familiar with for many years. These new businesses' create
jobs simply by innovating and implementing the ideas that were ignored when
they were employed. Most small businesses that begin come to the rude
awakening that "it's not that easy" but survivors tend to change entire
industries that were stuck in operating the "same old way" for years. This
also leads to lower prices, stable wages, higher revenues and growth for
services in that industry.
The perfect example is the middle manager that is unemployed and becomes a
contractor. In the 1980's America had a serious recession and an aging construction
industry. Many tertiary educated people became involved in construction and
began their business with the notion of implementing technology in that
industry. This created the beginning of a thirty year boom in the
manufacturing of one of the last products America had to offer . . .Real
Estate. The innovations, such as the screw gun, the air-nail gun, new roofing
products, vinyl siding, pvc tubing, and light weight scaffolding are a few
examples of the innovations that made labor easier to train and kept the price
of building stable. The cost of installing a roof, for instance, stayed
basically the same for almost 30 years. That is ambition blended with basic
low-tech innovation. That is one form of Job Creation.
4. Job Creation through Ideas: Innovate, create, invent, and invest. The most
difficult but the most effective way to create long-term employment is to
create new industries. It truly is the hardest way but the best way to
continually grow an economy that can support its citizens with employment. In
the 1990's the computer desk-top industry exploded along with the internet
industry. It was a time of high prices for technology, confusion in this new
young technology industry and lots of good paying jobs. It is possible to
see new industries surface suddenly as we maintain the free markets
environment and investment becomes more transparent and accessible to
everyone.
There are many opportunities on the horizon. Ideas that will lead to
innovation are alive and waiting somewhere. The Foundation for Job Creation
wants to do its part to bring them forward.
The Foundation for Job Creation hopes our definitions and the definitions
below are helpful to everyone. We thought it would be better if more people
had an understanding of Job Creation. Job Creation is not an easy task. We
have been following most business news stations and we have not been able to
get a grasp from them or Wall Street pundits. Wall Street seems to be
detached or unconcerned with the value of Job Creation, they need these
definitions also.
Other issues that affect Job Creation
1. Continuing education and preparation for shifts in employment needs.
Australians must be adaptable to change. Continuous re-education to prepare
one-self to learn new techniques and technology, as labour/intelligence
needs change. Australia can create jobs by being prepared for changes and
an increase of inevitable competition from less expensive well-educated
labour markets.
2. Adopting a methodology to forecast the innovation development and
innovation deployment in the future is important.
The goal of The Foundation for Job Creation is to be a practitioner job
creator. According to some economic groups you need to be a
certified economic developer, we disagree.
The Foundation for Job Creation is entrepreneurial and self-supporting through
memberships and donations. The Foundation is holding its first fundraiser on
December 13, 2009, a nationwide virtual Bench press contest. The donation to be a part of this effort is only twenty
dollars to enter and an easy way to lift some weight off of the chest of
America. The fundraiser is open to men, women, the disabled, and active
soldiers. All participants have a chance to win some of $14,000 in prizes and
The Foundation believes it will create a world record for the most weight
lifted cumulatively in a single weightlifting competition. The Guinness book
of World Records is allowing teams of 9 people to form and compete for the
24-hour record for most weight lifted.