When capital costs are zero or extremely low, it may be a disincentive to hiring people. If I can borrow without cost, I will buy robots rather than hiring people. I will then not have a headache with social security, I can hire and fire without any problem, and I don't have to deal with medical insurance for everyone.
Saturday, September 15, 2012
Marc Faber: How Low Interest Rates can be a Disincentive to Hiring
When capital costs are zero or extremely low, it may be a disincentive to hiring people. If I can borrow without cost, I will buy robots rather than hiring people. I will then not have a headache with social security, I can hire and fire without any problem, and I don't have to deal with medical insurance for everyone.
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