The million-dollar question - whose job is it to create jobs?
I have heard people either crediting or discrediting their respective governments, on the issue of Job Creation. I will answer this question by referring you to the job creation chain as viewed by UCUSA, the Unemployed Citizens Union of South, NPC. Given this focus, the government is found on the end tail of the chain, thereby making it difficult to infer that it is the government’s job or duty to create jobs. To prove this, let’s cut the chain just before the government on the chain. Now, can they become able to create jobs now? Can they sustain the police servants, medical, agricultural, etc? The answer is, NO, they cannot for they would no longer be collecting any revenue. The source is from somewhere, that is, at the head/start of the chain. That is where we need to look if we are serious about Job Creation. Now, let’s look at this chain we are talking about.
It starts with one person’s idea (chain-link one), which idea is put into practice in a form of a business (chain-link two). Within this chain link, something very, very important emerges, and that is what is called ‘labour demand‘. This demand comes about as the business owner requires more labour in order to fulfill the business demands, human resources, amongst others. The business owner will go ahead and hunt for the demanded labour, Bear in mind that, where there is a demand, there should be a supply. Someone else has to be the supplier of that demanded labour. The business owner ‘shouts out’ that they are looking for people who are willing to assist them in their business, in exchange for the prescribed rate of pay for a given period. When they receive a positive response and find people who are willing to accept the offer, we then immediately start to have what is called, employment relationship (chain-link three) coming out of that particular arrangement. Now, the demand has met its supply and we have employment in place. The worker(s) is (are) the suppliers of labour that was demanded by the employer.
For as long as that employment relationship remains, workers or employees are required by law to pay tax (chain-link four). Now a question arises, “Who collects tax?” The answer is the government (chain-link five). Another question that follows is, why do they collect tax? The answer is, “in order to keep the country going”, in terms of required public services, like police, medical practitioners, firefighters, military, etc. So do you still think, the government is primarily responsible for creating jobs? remember earlier, we said let us cut the chain just before the government chain-link. Where would the government get the revenue, if there’s no more tax-collection? That settles it, the government is not creating jobs, but may secondarily be adding towards employment from the tax revenue collected from those who are receiving from businesses that were set up based on an initial idea by someone (reversing the job creation chain, from end to start).
Now, the million-dollar question has been answered. BUSINESS IS WHAT PRIMARILY CREATES JOBS and this is where UCUSA CAO Model comes into play. We seek to CAC (Collect, Acquire, Create). What do we seek to collect? We Collect revenue, Acquire assets (businesses) and Create Jobs. Based on this model and given the current number of unemployed citizens in South Africa or any other country for that matter, for only R0,66c per day per person, millions of jobs will surely be created. #ucusa #WeCreateJobs
For more on our CAO Model and its CAC concept you may WhatsApp/call +27 81 244 7004 or drop us an email with the subject line “More on CAO and CAC”