Economics

Demand deficit

Fiscal Cliff Letter: Small Business Owners Urge End Of Bush Tax Cuts, Zach Carter, Huffington Post

“As businesses owners, none of us hire more employees simply because someone gives us a tax cut. We hire more employees when our customers demand more of what we have to sell,” the letter reads. “When a teacher, firefighter, or construction worker building public infrastructure loses his or her job, many of us also lose a customer.”

Increased Demand Gives Firms the Need to Hire, Center for Economic and Policy Research

“…Actually, an increase in the demand for goods and services forces employers to hire at the risk of losing business.

“If a restaurant doesn’t have enough staff to serve its customers, it will lose customers. If a factory doesn’t have enough workers to fill its order then it loses orders. Increased demand forces businesses to use more labor…”

Categories: Economics

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