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Starbucks And The Dark Art Of Job Creation
2011 Mike Church
Hey folks, its Mike Church with today’s Church Doctrine.
It seems the longer the unemployment rate is stuck at 9 per cent or more, the more stupid and hairbrained are the schemes concocted to address it. It is almost as though job creation has become shrouded in mythology and requires some sort of understanding of the dark arts to understand. Why, if only we knew the spells cast by the ancient job creating druids, or the potions cooked up by medieval wizards, then we could get back to hiring! In todays edition of the New York Slimes newspaper an editorial appears that illustrates this absurdity. The CEO of Starbucks Coffee, a chap named Howard Schultz recently approached the job creation enigma by randomly trowling a coffee stirrer over the whipped cream in a cup of dark roast and then the inspiration occurred to the Chief Officer of over 7,000 franchise stores: why, well pass the bucket around every Starbucks, and the American people can chunk in $5 to our capital formation fund and before longvoila! We have the collateral to secure investment loans for small businesses and thenwheeeee! Everyone starts hiring, the unemployment spell is broken, the princess awakens to find her newly employed Prince Charming at her bedside and everyone lives happily ever after!
Forget the fact that all monies invested in business are invested for a rate of return, this helps regulate the amount of capital at risk and who it flows to. Remove the incentive and transfer it to some kum baya singing community banker as Starbucks suggests is nearly the same as putting the Obama Energy Department in charge of it. And since there is no return on investment due to the investor, the hippie losers who chunked crumpled $5 bills in the pot, there is no downside to the risk.
If you want to start and or expand business and create jobs then stop taxing capital, stop regulating capitalists and stop pretending that outside of free markets being free there is any secret to job creation save for the secret spell that makes otherwise smart people pay $4.00 for .35 cents worth of Starbucks coffee.