Thursday, August 13, 2015

Maximizing Demand For Labor By Minimizing Barriers To Entry

Reply to: What Does America Really Want?

Average citizens are the real job creators, it’s high time we started to take responsibility and demand change.

Average citizens are not job creators. And that’s the problem. To be perfectly blunt, you are the reason why average citizens are not job creators.

In order for average citizens to become job creators… it has to be stupid easy and profitable to start a business and employ people. But nearly everything you support as a liberal makes it harder and less profitable to start a business. Basically, you firmly support the construction of high barriers to entry.

Because barriers to entry are so high, it’s nearly impossible for average citizens to test out their business ideas. Everybody has at least one business idea. Everybody is capable of finding room for improvement. But most of these improvements aren’t made because average citizens are daunted and thwarted by the high barriers to entry. 

Now here’s the key part. High barriers to entry have logically detrimental consequences. These detrimental consequences are the very reason that you support constructing higher barriers to entry. But by supporting higher barriers to entry… you simply make the problem even worse. So we get stuck in a very vicious cycle.

The higher the barriers to entry… the fewer the employers. When the barriers to entry are high enough… there are far fewer employers. And when there are far fewer employers… there’s far less competition for labor. And when there’s far less competition for labor… labor will be poorly rewarded (beggars can’t be choosers). You think it’s a problem that labor is poorly rewarded… but unfortunately for everybody, you think that the solution is to make the barriers to entry even higher… which only makes the problem even worse.  

Maximizing the demand for labor is truly the best way to help workers. But in order to maximize the demand for labor, the barriers to entry have to be minimized. Doing so will make it easier and more profitable for average citizens to become employers. Maximizing the quantity of employers will maximize the demand for labor. 

When the competition for labor is maximized…then any worker that isn’t happy with their compensation or working conditions will easily be able to find a better opportunity. Or… they’ll easily be able to start their own profitable business… which will increase the supply of better opportunities (builderism).

Everybody substantially benefits when there’s an abundance of open doors. So please do everybody a favor and think things through. Regulations meant to protect and benefit workers might sound good… but is more red tape truly going to open more doors? The average citizen doesn’t have a law degree… so do you really want to make a law degree a necessary requirement for successfully starting a business and employing people? 

Let me break it down for you. If it’s stupid easy for the average citizen to successfully start and operate a profitable business then there’s no point in minimum wages, unions and countless regulations meant to protect and benefit workers. Because if any worker isn’t happy enough… then they can simply and easily just start their own business. 

So which one is it? Is it stupid easy to start a profitable business? Or… do we need the government to protect and benefit workers? Because it really can’t be both. 

If you want to maintain that it’s necessary for the government to protect/benefit workers… then you’re admitting that it’s too difficult for the average citizen to start a profitable business. But how can any economy truly thrive when, as a result of government intervention, it’s too difficult for most people to start a profitable business? How can workers substantially benefit when there’s a scarcity of open doors? How can below average citizens substantially benefit when the demand for their labor is minimized by maximally high barriers to entry? 

On the off-chance you’re actually interested in learning more…

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