Is The Purpose of Businesses to Create Jobs?

In a time when bailouts and handouts are reaching new records, people are increasingly looking to businesses to provide jobs. But should they be?

With the recent government intervention into companies and executives who committed fraud and embezzled from shareholders, people have gotten used to the idea of government and the public overseeing the internal activities of companies large and small.

There are laws which dictate who employers must hire, who they may not hire, and how much they must pay employees. There are laws which dictate working hours, vacation time, and health benefits. With businesses providing so much for employees and the general public, it’s not such a stretch to believe that many Americans believe that businesses have a responsibility to provide jobs. Especially if those businesses receive government funding.

But what is the primary purpose of business?

This will upset a lot of people, but the primary purpose of a business is to enrich the shareholders as much as possible. That’s it.

It is not to create jobs. Of course, job creation is a great side-effect, but the fact is that unless the primary function of a business is met, there can be no jobs. If a business is not enriching its shareholders, those shareholders will divest their interest, and they will go elsewhere. Then the business will cease to exist, and so will the jobs.

Therefore it’s obvious that the jobs a business creates belong to the business. That means if a business wants to outsource a job overseas, that is its right. The job does not belong to the employee or the government.

During normal economic times, it’s easy to forget this fact. It really becomes clear only when people began losing “their” jobs in mass numbers. This is why it’s so important not to be dependent on a job. You must learn to find or create your own opportunities that will provide you residual income — income that you receive whether you work or not.

This is truly the only surefire way to prosper during even the worst economic times.