Paying People Not To Work Saved Millions Of Jobs

[petros]

First the laying off of employees is not loss of capital which is why that is usually the first thing to be cut. Employees have a value to a company in order to meet revenue targets but when there is no revenue, then they are a liability, financially speaking.

Human Capital Definition | Investopedia

 

[Highball]

Take a look at our Congress. the staffs and the members of the Administration (Any of them for the past 60 years) and you'll see a great example of doing nothing, being ineffective and getting premium wages and benefits too. The Entitlement collectors have a great role model to look uo to. They will never bite the hand that feeds them for free.

 

[JLM]

If there is no demand for fools gold, then mining fool's gold is a fools errand. Some minerals are in more demand than others. Lithium for example, until the next generation of batteries, maybe magnesium, replace them. Much economic activity takes place because competent managers are aware of the market demand for their product...

Demand is very real. It's not just a word.



Yes, lets just get rid of Old Age Security already. It's quite negative to all those seniors who are receiving it. They certainly don't spend it on anything useful. No businesses could possibly benefit from the money given to seniors to buy food. [/purple font]

You're missing my whole point. We can't be mixing up being lucrative with being humanitarian. I was countering the suggestion that paying people for doing nothing was lucrative. I would never advocate leaving people to die in the snow or on the street or even deprive a child from having the best chance in life. But those aren't lucrative activities (short term for sure and possibly long term) hence my suggestion that able bodied people work for welfare.

Widgets Limited can operate only as long as the bank account is in the green and/or the bank lends them cash to fund operations. Once those dry-up, there is no choice but to close the doors.

While Widgets Limited can live off of savings and other non-core assets, the critical factor is that the demand for their widgets must exceed a level that will provide positive cash flow... anything short of that is simply deferring their eventual fate of going titters

But do the Unions understand that?