The Economic Ignorance Of Juan Williams

By Rob Janicki
Some observations on business economics and liberal perversions of such principles.

Monday afternoon I was listening to Bill O'Reilly in the background.  The conversation between O'Reilly and Juan Williams drew my attention.  The topic was the economy and Obama's failure to turn the economy around as he so often promised in the 2008 presidential campaign.  As always Williams played the role of Obama sycophant and ardent supporter.  No surprise there.  O'Reilly pointed out the uncertainty in the economy as it relates to business decisions to expand their operations.

Businesses are reputed to be sitting on a trillion dollars of cash reserves.  Williams pointed out rightly that business profits were up causing this reserve of cash sitting on the sidelines.  Williams strongly implied that if business would only hire more employees that the economy would rebound in short order.  The unspoken implication is that it is the fault of business sitting on the sidelines that has caused the economy to drag on in a malaise.  Williams further implied that business was purposely sitting on their cash reserves in order to see Obama fail.  To some small degree this may be true, but it is impossible to quantify such a statement and thus Williams' statement has no value whatsoever.

Williams demonstrated that he has as much understanding of the economy and the role of business in the economy, as does Obama, which is to say no real understanding at all.  Williams, like virtually all liberals, believes businesses exist for the benefit of the economy and as some social welfare providing organization.  Williams' simplistic thought that all business has to do is to start hiring, was absolutely juvenile in understanding how and why business operates.  

Business engages in commerce and the economy for the purpose of making a profit for its owners, whether they are single proprietorships, partnerships or corporations.  It's the competition between businesses producing the same or similar products and/or services that produces the best possible products and/or services at the lowest possible prices.  This is the rule of competition.  It's that competition that actually reduces profit margins of businesses and makes profits very precious, compelling businesses to maintain higher than normal reserves in unstable and uncertain economic times.

Mr. Williams implied that businesses had some social responsibility to provide jobs even though any new jobs are not justified by business operations.  One of the points Williams failed to note is that much of the profits of American business are coming from the more lucrative foreign exports, rather than domestic consumer consumption.  If the general workforce currently is supplying the necessary manpower to produce current revenues, there is no logical reason for business to increase the size of their workforce, as no additional revenues would result, let alone additional profits.  Such a situation would drain potential revenues and profits, thus imperiling businesses going forward.  Apparently this never occurred to Juan Williams, as this would not fit his narrative that businesses are to blame for the poor economy.

Williams simply has no understanding of basic economics.  Businesses, in order to maximize profit potential, operate on a fine line of appropriate supply production matching consumer demand.  Hiring more people to do the job that can be done by a lesser number of people is pure nonsense and cannot be supported economically.  Williams and liberals who advocate hiring those additional and unnecessary employees are seeking to make private business a part of government's social welfare program.  You can call this socialism or fascism, but ultimately such actions seek control over the private business sector for the greater benefit of an expansive government seeking to achieve and maintain greater control and power over individuals and businesses.  Such actions of liberals have nothing to do with people and everything to do with placing blame on others in order to maintain the charade and their power and control of people and institutions.