

All right then, listen good 'cause I need to go do the family budget for the week and I have a limited amount of time to spend on this subject. While I prefer to directly inject humour into my postings I will be looking to an external entity for it's input today. I'm not the greatest teacher so it will require a little extra effort from you to make this work. You see, my teaching method is to stand at the end of the forested path yelling, "I'm over here".
Whereas a good teacher will come meet you where you are and show you how they got there. So sue me.
The starting place today will be a statement pertaining to economics that I hope we can agree on. If not, your path to "over here" will be a different one, though still attainable. Providing a product does not result in a purchase. Seems simple enough to me, what do you think? Can we start there together? If I build 2000 gizmos that there is no demand for, my inventory will likely stay at 2000 for quite some time. Meaning, I will not need to buy parts from my vendors to build said gizmos, meaning those vendor businesses will suffer equal to the proportion of their dependence on my need for their parts. This is a very direct relationship. I don't sell gizmos, they don't make parts for me. If I am their only customer, their fate is mine and so on. Further, if there is a demand for gizmos, and there are 10 different manufacturers of these items, then the flow of money to purchase materials, make parts, assemble parts into gizmos, etc. all moves on smoothly and effectively.
Now then. Jim and Jill Fredrickson are planning a gizmo purchase in 6 months when their old gizmo will be completely worn out. At the time of their decision, there are 10 companies making gizmos. 6 months later there are 8. Is it logical to suppose that they will not purchase their new gizmo because there are now only 8 companies making them? If so, then my fiction has no valid point in reality. However, I believe, Jim and Jill will simply buy from one of the 8 companies still in business, don't you? And if there are now 8 companies building gizmos providing for the demand, there will be no fewer jobs in the material supply stage, the parts vendor stage, or the assembly stage for the gizmos to be produced. It's all driven by the demand. Whether there are 10 companies, or 2 companies, the demand is what determines the need for jobs in the companies, not the companies themselves.
So, how can Mr. Obama, claim to have saved all these jobs by bailing out GM and Chrysler? The only real difference would be that people would be buying cars from different companies, requiring these other companies to hire more workers and order more materials and parts from their vendors, who would in turn be required, to hire more workers to supply the companies with what they needed. When the dust cleared, we would be left with more efficient companies and more affordable vehicles, not to mention less debt for us, and our children to be burdened with. My argument is, any jobs that cannot support themselves, that is to say, any empoyee providing a service to their employer, that is not equalled by what that employer can then extract from the value of it's product, is an overpaid employee. Other wise the whole system comes down and the company goes bankrupt. Oh, wait a minute.