[rando444]

If businesses started creating child companies (for any reason) it would result in substantial job creation.. so this sounds like a win-win to me.

[gotoeleven]

Maybe we should require that everyone break at least one window on their house once a year. This would create a lot of great window repair jobs.

[sf_rob]

This is the broken window fallacy. If our goal is to increase employment rates then we should support policies that do so where human productivity is most efficient.

[NullPrefix]

Substantial job creation of ceo and accountant positions, that is. Shell companies do not really employ people.

[ImprovedSilence]

I think you mis-understand just how easy it is to create a corporation with no employees...

[tempestn]

Can you elaborate? It seems to me that if a single corporation just split their operations into multiple separate child corps, it wouldn't necessarily result in job creation. (Duplicated positions could just be contracted to a single company in the group, for instance.)

[inetknght]

I don't see any guarantee here that splitting a business will create jobs.

1) Business A has 1B in profits with X number of employees, gets taxed.

2) Business B splits into 10 businesses with 100M in profits and X/10 number of employees per business unit, and doesn't get taxes.

[cronix]

Sounds like Business B is going to need 9 new buildings. Are they built already?

[luckylion]

A single building can support multiple mailboxes. Hey, a single mailbox can even support multiple stickers!

[sokoloff]

Why would they need new buildings? If all their operations fit into their current buildings today, they'd all still fit tomorrow as well.

[kortilla]

Presumably you’ve never heard of shell corporations. Child companies do not imply jobs.