Dragon
Senior Member
- Sep 16, 2011
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you know nothing as it pertains to production on demand and production for inventory.
I know that both are responses to consumer demand. I also know that "production on demand" and production that is driven by demand are not synonyms. Production for inventory is not production ON demand, but it is production DRIVEN BY demand. Don't confuse the two.
On the heels of a recession, there is very little production on demand. It is all about selling from inventory.
Consumer demand following a recession does not create jobs. It helps deplete surplus inventory that accumulated at the onset of the recession.
Right, but that's another way of saying that jobs aren't created immediately after a recession because it's insufficient to do so, or was insufficient to sell the inventory during the recession. Had consumer demand been higher earlier, there wouldn't be stockpiled inventory to sell.
Hiring ONLY takes place when there is a noticeable LONG TERM increase in demand for product...and that is based on forecasting.....a good reason why a 2 month extension of the tax holiday is useless...and a one year is less useless...but still not sufficient.
I agree with all of this, but we're still in the space where consumer demand creates jobs. What we really need is to systematically raise wages across the board, and adopt government policies that will shape the labor market so that happens (instead of in the opposite direction the way we've been doing for the past 30 years). I agree about the payroll tax holiday -- pissant stuff that won't accomplish much.