Government Officials want Businesses to do their Social Duty after making it so Difficult for them to Earn a Profit

Posted by PITHOCRATES - July 27th, 2013

Week in Review

You know a country is intervening too much into the private sector economy when they start saying things like this (see Hiring UK workers ‘more important’ than profit, Matthew Hancock indicates by Peter Dominiczak posted 7/26/2013 on The Telegraph).

Mr Hancock, the business and skills minister, has said that companies have a “social duty” to employ young British workers rather than better-qualified immigrants.

He said that employers should be prepared to invest in training British staff rather than simply looking for “pure profit”.

“During the last boom there was a lot of recruitment from abroad and, in fact, youth unemployment went up, even during the boom.

“This is about a change of culture. I’m arguing that it is companies’ social responsibility, it is their social duty, to look at employing locally first.

“That may mean that they have to do more training. It may mean more training in hard skills, in specific skills. Or it may mean training in the wherewithal, the character you need in order to hold down a job.

Of course, the question that gets begged to ask is this.  Why do the immigrants have better training in hard skills, have better training in specific skills and have the character to hold down a job?  Why is it that the British youth is not as employable as these immigrants?  Is it the British educational system?  What exactly are these other countries doing better than Britain that their people are better qualified for these jobs?  Or is it that these immigrants are just older and more responsible and desperate for work?  As there is no generous welfare state in their country to support them in their unemployment?  Has the government created an environment where businesses have to turn to better-qualified immigrants?

If Mr. Hancock thinks business should hire people based on social duty instead of what’s best for the bottom line then why doesn’t he show these businesses how it’s done.  Let him create a business that hires based on social duty instead of profit.  Of course, without profit it will require Mr. Hancock to use more and more of his personal funds to finance business operations.  Such as paying to train those unqualified workers.  But I’m guessing he won’t do that.  Because he’s a government official.  And will only risk the taxpayers’ money.  Force businesses to take greater risk with their money (by operating at a lower profit level due to higher taxes and regulatory costs).  But he won’t risk his money.  No.  Anything but that.  But he’s perfectly okay with everyone else risking theirs.

Perhaps this is the reason why these immigrants are better qualified for these jobs.  People in government managing the private sector economy who don’t know the first thing about business.  But think they do.  And have no idea of just how ignorant they are.

www.PITHOCRATES.com

Share

Tags: , , , , , , , ,

Comments are closed.

Blog Home