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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Alighieri who wrote (850021)	4/15/2015 11:08:15 AM
From: i-node	3 Recommendations Recommended By D.Austin one_less TideGlider Respond to of 1573924

>> The economy drives this, not the ACA, up or down. If a business has business then it will hire, and the converse. It doesn't work this way. I know many on the left believe it does but that belief is not based on science; it is based on the way you want it to be. Microeconomics, unlike Macro, generally floods decision-makers with good information through cost and managerial accounting systems. As a result, the theoretical foundations of microeconomics have been tried for years and we know those precepts to be fact. What we know is that marginal profit is equal to marginal revenue less marginal cost. And the objective is to operate where marginal revenue is equal to marginal cost, which is how you will maximize profits. This is important because you don't hire more employees than you need to achieve this objective. And you don't hire employees who will reduce your marginal profit. With the ACA, there are many, many employees who are simply not productive enough to warrant the extra expenditure. When combined with the threat of increased minimum wages, an employee who is marginally productive isn't going to be working. As I've pointed out before my dad had an 8th grade education and he fully understood these concepts. Not because he got it in school but because he was intuitively a great business man and it just made sense: You're not going to put someone on the payroll who can't increase revenue.