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The Theory of Competitive Advantage and More Business Capital Loans
Unemployment is still very high. As we move into election season and the left argues about spending more while the right says that government is only making things worse, it’s uncertain that President Obama will do anything drastic to improve the economy. The Fed has power in its hands and will probably advocate for another round of quantitative easing, but President Obama’s jobs agenda will likely make little impact.
Because consumer confidence is low people are less likely to spend fast and hire new workers. Many businesses are reluctant to take on a working capital loan, and are already thinking about how to consolidate work. But as Germany has shown, it is better to cut work hours than to fire absolutely.
The labor force is suffering because of technological developments and lack of skilled workers. Coupled with globalization and outsourcing, it is becoming increasingly difficult for an individual to find a satisfying job while making enough money. In economics, the “lump of labor fallacy” insists that there is only so much work to do, while the theory of competitive advantage shows that in free markets, where business capital loans are easy to obtain, everyone can focus on what they do best.
The problem comes in how governments and employers will adapt to this new system.
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Posted on: Monday, September 12th, 2011 at 9:00 am
Posted in: Merchant Cash Advance, working capital loan
Tags: business capital loan(s), merchant cash advance, working capital loan