Posted by: A. C. Cockerill | April 22, 2016

Picoblog Question – 2016 – Post #31

Picoblog Question – 2016 – Post #31

What is the most important equation for job growth?

My two cents, but please share yours:

My vote is for the Income Statement.

(Revenue – Expenses) – Taxes = Profit

Revenue: This number is limited. Customers will only pay so high a price, and the small business can only manufacture just so many widgets.

Expenses: This is the money used to pay current employees. It is also used for paying the costs of operating the business and for paying the cost of understanding and complying with government regulations, a rapidly increasing amount.

Taxes: This is for local, state, and federal government taxes.

Profit: This is what’s left over. This money is used to pay for creating new jobs. It is also the money used to pay for innovations such as new medicines.

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