The Sunday editorial page of the New York Times has an article titled “Wanted – Leadership on Jobs“. This article describes the current unemployment situation as bleak and requests “leadership” from politicians to arrest this trend. The brief editorial is nine paragraphs long; 8 of them describe the problem, and then the 9th (summary) paragraph includes their recommendations:
If successful, ambitious goals like health care reform and energy legislation may generate jobs, but officials have not persuasively linked them to job growth. Congress and the administration also have not done enough to directly create jobs. That could be done with more stimulus to spur job creation, or a large federal jobs program, or tax credits for hiring, or all three. Or surprise us. Just don’t pretend that the deteriorating jobs picture will self-correct, or act as if it is tolerable.
Often times our debate with the NY Times is presented as a left / right political view issue. However, in this case, the differences are even more profound – the NY Times simply has no idea what the problem set is, so they can’t even fathom a solution.
Job Creation
The first and most profound misunderstanding is that jobs are not “created”. They don’t come about from a fiat by government and can’t be “willed” into existence.
Jobs are a by-product of:
– Either a successful (profitable) business or a business in growth mode
– That has a need for services or labor to meet a business requirement
– That they can profitably sell to a third party, or leverage as part of a broader business venture
The issue of whether or not to hire additional employees is an issue that all of the employers that I have worked with or consulted for over the last two decades have wrestled with continuously. If government or the NY Times wants to increase the number of jobs, they need to peer inside the head of a business executive and work to push the levers that would make them more likely than not to hire. Thus the first and most significant problem with the lack of understanding of the NY Times is that they don’t even frame the problem correctly – if they want to create jobs, they need to think like a business person.