Economics

Economics is both simple and extremely complex. 

Its simple in the fact that there are often enough clear cause and effect interactions that can be measured, analyzed and predicted.

More jobs results in more income which results in more spending.

There are many such relationships and they are fundamentally sound.

The complexity often arises when you discuss what create the cause?

So how do you get more jobs?  Well people in business like to make money so the job will be created if it creates more value than it costs.

Now this is where it gets complex.

Not every job is so clearly related to profit and loss.

Also, to make the most profit you have to produce the right amount of goods.

If you create more goods than people want, it will drive the price down hurting profitability.

If you produce too few, you will lose market share to other, hurting profitability

This is where you see supply side and demand side economics diverge.  Simply put, supply siders believe more supply will lead to lower prices, increasing demand and creating more jobs.

Sounds convincing except there is a point at which demand cannot be increased.

So at some point more supply only results in lower prices, not more demand.

Business people know this, so when you already have plenty of cash, more cash isn't going to result in more jobs.  It would be bad business.
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