(Or why neither tax cuts, nor stimulus spending will increase long-term employment):
Profit, the oxygen of business, that gap, that excess remnant of revenues over costs, is found by lowering costs, increasing sales, or some combination of the two. It is a simple equation. You can ignore it when demand is high. High demand will drive the gap. When there is little demand, that gap can be found only in a more-for-less increase in productivity. Employment is under the “less” end of this equation. Tax cuts and stimuli spending don’t drive demand. In fact, they have nothing to do with it.
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