Peter Schiff Shreds Obama Campaign’s Economic Illiteracy

August 8, 2012 04:55

Obama campaign demonstrates its ignorance of capitalism, spewing more of the anti-employer to stir up the passions of the employees. To stay profitable and in-business sometimes companies have to fire a small group of its employees to maintain the jobs of the current, remaining employees.

And if a company needs to lay off workers, as Schiff mentions, that is indicative of the fact that those workers are not providing value/adding productivity to their current employer, and there labor will be more efficiently used elsewhere, where it will add more output for a different employer (possibly in a different industry).
It’s a shame more people don’t see this economic demagoguery from the Obama campaign for what it is: inflaming class hatred based on economic illiteracy, pitting people against each other.
The fact is employers only hire people if that additional worker is going to increase their total output, as Peter Schiff explains. The marginal product of labor produced by an additional worker must be greater than the cost to the employer of hiring that additional worker. Barak Obama would rather an entire company go bankrupt so he can swoop in and bail the company out.
If the President actually cared about understanding how markets work, he would comprehend the dynamic of business sometimes having to cut payroll to maintain solvency.

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