Mergers are praised by business analysts for efficiency based on the number of layoffs (among other things), i.e. the number of productive jobs they destroy.

Communities offer corporations tax breaks and other incentives because they expect corporations to create jobs, not destroy them.

So which is the purpose of corporations, to create jobs or destroy them?  And if there is a purpose to create jobs, how do we make it actually so?

I will separate out the question of efficiency and productivity.  It is possible to become both more efficient and more productive (closely related) without destroying jobs.  The greater production would in this case go toward increasing someone's standard of living.  Greater profit from greater production would (and has in some past cases, in the 1960s) go into increasing both employee salaries and shareholder profits, representing their contribution to and participation in the increased standard of living.

To produce the same thing as before more efficiently does not increase the aggregate standard of living.  It does directly increase wealth inequality, because of the layoffs its implies.  This does not seem to be a valid social goal by any measure.

It is not even a legitimate corporate goal if one takes the long view.  That view is typified by Henry Ford who realized that if his workers could not buy a car, no one could (because his workers already set the benchmark standard for industrial wages).  Ford used the efficiency of his assembly lines to double wages over a single weekend in a bold move (highly criticized by the Wall Street Journal, with some businessmen saying Ford would "go to hell" for his crime), but it established a trend in American business that prevailed until the mid 1970s when the Japanese began to take auto manufacturing away by more market-responsive long-lived products.

Japan went through a similar evolution.  Within a mere 20 years they had matured to the level of the U.S. and began "layoffs," ending the lifetime employment practice of Japanese firms.  The Japanese economy has never recovered.

Employment stability is necessary for family planning and education of children, which is in turn necessary for the selection of careers and future innovation and increases in productivity.  Suppose Steve Job's parents had not had stable employment in silicon valley?  Suppose Bill Gates' parents had not had stable careers in Seattle?  Then neither Apple nor Microsoft would have been created, nor many other similar companies, and the U.S. would have long ago fallen into 3rd world oblivion.

Currently the U.S. has the greatest wealth inequality of any developed nation.  Wealth redistribution does not appear to be a method which accomplishes innovation and progress, indeed it is a disincentive.  A crash rate model I have developed suggest that this inhomogeneity, and the lack of a real stake in the economy that social redistribution creates, are making a future crash much more likely.  See link if interested further in this argument. 

I just saw the movie Tomorrowland, which frames these issues nicely.  But the Disney solution it offers is of course not serious, only to select and encourage "dreamers."  How do we realistically go about providing the social conditions, in which a majority have a stable stake in the economy and efficiency is not used to create inequality, in which dreamers can actually flourish?

http://www.amazon.com/Economic-Optimization-Innovation-Robert-Shuler-ebook/dp/B00VY7YG0I

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