ADP recently released their jobs report for August of 2015 and it’s good news. The U.S. Economy added 190,000 total jobs last month. You can find more on the specifics by following this link:
Why doe economists pay so much attention to jobs? We’ll unlike political candidates which more often do so to cater to the needs of their constituents, the truth is, jobs play an enormous role in our economy. You may have often heard the notion that “entrepreneurship is the engine of the economy.” As an entrepreneur, I’ll attest to that but putting my economist hat on, the real engine is jobs.
The concept is actually quite simple in principal. The economy is in its most basic simplified version is really just the trading, or in most cases the transfer of money, in exchange for goods and services. It doesn’t take much thought to recognize that in order to have paying customers, customers must have money in the first place. Any economists reading this are probably thinking to themselves “wow what a revelation!” (sarcasm) but the reality is much of the voting public tends to omit this important detail in their view of the economy, as is often reflected by the rhetoric of political candidates.
While the “supply side” vs. “demand side” economics war still wages its important for us all to remember the well founded relationship between jobs and economic prosperity. Even if you’re an entrepreneur, a CEO, medical doctor, attorney, or in some other way have established a comfortable living, at the end of the road there is always a customer, and the more money they have, the more money your company stands to make, and the more money you may receive as a result of it.