In general, the justification for larger businesses is efficiencies of
scale. By definition, the more efficiency you create in your business
execution, the less you need to staff. So fewer, larger, companies
will have a bunch of jobs but it will be, in aggregate, less than the
larger number of small companies who would perform the same amount of
production.

That's one of those classic conundrums in economics: by creating
efficiency, you reduce unit costs and produce more with the same
amount of input. That's good for the consumers of your products as it
tends to lower prices (if it is a competitive market). However, that
reduces the hiring rate, leading to more slack in the labor market. If
there is not enough creation of new segments of the economy that will
pick up the slack in the labor market, too much efficiency can lead to
economic conditions where out of work folks aren't able to support the
output your company has ramped up by creating all that efficiency and
then everything stagnates.

This problem is especially problematic when you consider structural
inequalities between market segments. If you consolidate manufacturing
of a product by mergers and then off shoring, you've made the process
more efficient, possibly leading to lower prices, and a bunch of laid
off workers. If the area of the market that is trending, however, is
not set up to hire those workers (say, high tech), then you get
inflating wages and a hiring problem in one segment of the job market
while having high unemployment in the other segment.

In short, big business creates jobs but less jobs than would be
created by small business meeting the same market need. On the other
hand, they often will be able to reduce prices because of
efficiencies. Those efficiencies, however, can lead to further
economic problems down the road. So, yeah, it's a complicated feedback
loop. In general, I prefer smaller business as I feel that the
innovation possibilities and higher employment rates outweigh the
benefits accrued from increasing consolidation. But there are
arguments to be had both directions, for sure.

Judah

On Mon, Oct 17, 2011 at 12:48 PM, GMoney <[email protected]> wrote:
>
> On Mon, Oct 17, 2011 at 2:33 PM, Maureen <[email protected]> wrote:
>
>>
>> But are those jobs from corporations, or from small businesses?
>>
>> Also, are those emails viable jobs, or just spam blasts from recruiters?
>>
>
> Couple have been spam blasts, but most have not been.
>
> Some small businesses, several that were quite large. My company is
> somewhere around 46K employees....that's a lot of jobs.
>
> Do you somehow doubt that corporations provide jobs? I mean, a corporation
> is nothing more than a collection of employed people....right?
>

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