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Who Really are the Job Creators?

Taxing the rich to make middle class investments that make the middle class grow and thrive is the single shrewdest thing we can do for the middle class, for the poor, and for the rich.

[Paraphrased transcript from Seattle Venture Capitalist Nick Hanauer]

Rich people don’t create Jobs. Nor do businesses large or small.

Jobs are a consequence of a circle-of-life-like feedback loop between customers and businesses.  And only consumers can set in motion this virtuous cycle of increasing demand and hiring.

That’s why when business people take credit for creating jobs, it’s a little bit like squirrels taking credit for creating evolution. It’s actually the other way around.

Anyone whose ever run business knows that hiring more people is a course of last resort for capitalists. It’s what [they] do if and only if rising consumer demand requires it. 

In this sense, an ordinary consumer is more of a job creator than a capitalist.

That’s why our existing policies are so upside down. When the biggest tax exemptions and lowest tax rates benefit the richest — all in the name of job creation — all that happens is that the rich get richer.

If it was true that lower taxes for the rich and more wealth for the wealthy led to job creation, today we would be drowning in jobs. 

And yet employment and under-employment is at record highs. 

Another reason this idea [that tax breaks for the wealthy creates jobs] is so wrong-headed is that there can never be enough super-rich people to power a great economy. 

[A rich person] makes hundreds or thousands of times as much as the median American, but [they] don’t buy hundreds or thousands of times as much stuff.

We’ve had it backwards for the last 30 years. Rich people don’t create jobs. 

Jobs are a consequence of an eco-systemic feedback loop between customers and businesses. And when the middle class thrives, businesses grow and hire and owners profit. 

That’s why taxing the rich to pay for investments that benefit all is such a fantastic deal for the middle class and the rich. 

In a capitalist economy, the true job creators are middle class consumers. And taxing the rich to make middle class investments that make the middle class grow and thrive is the single shrewdest thing we can do for the middle class, for the poor, and for the rich.

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Bewildered June 06, 2012 at 11:04 PM
Al, let's give it a break for awhile and enjoy the quiet of no negative ads or robo-calls. No need to go after Lyle. Your guy ( and mine) won. He is aware of that, trust me.
The Anti-Alinsky June 07, 2012 at 02:39 AM
One last comment to add to JB, Alfred and Steve's brilliant ones: If Moneybags doesn't do his research and invests in a firm or product that is not selling, he ends up losing his money. It's not wasted since the workers get paid, but he doesn't get any return on his investment.
The Anti-Alinsky June 07, 2012 at 03:18 PM
Lyle, Victor and Randy, Elmer Fudd may be better able to explain it to you. Skip to 4:50 if you really don't want the background story: http://www.youtube.com/watch?v=IUGJmo7XzS8
Randy1949 June 07, 2012 at 04:11 PM
That was a tad simplistic, Anti. For one thing, it didn't explain how anyone in his town could afford boots if he was getting his labor for free and wasn't hiring townspeople to make them. And when was that cartoon made? Looks like its over fifty years old.
The Anti-Alinsky June 07, 2012 at 06:01 PM
Randy you really are a doof. Go ahead and hold onto your ignorance. In the mean time Governor Walker is moving this state forward by creating an environment where we will grow jobs and prosper. You just go ahead and stay bitter and miserable while the rest of the state celebrates. And yes, it is that simple!!!

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