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I've said a million times on here that it's consumers that create jobs, not some dopey CEO making 400 times the amount of his workers.
All CEO’s do is spend time coming up with different methods to steal from the company they work for, and paying government officials to write laws to wipe out the competition while making thing easier for their company.
The "RICH" and consumers are inseperable, in fact they are the same to a degree.
The economy is a cascade of critical components where 'customers' are at the same time the 'suppliers'.
The government, however, is simultaneously a recipient and a distributor and a very poor distributor at that.
If you imagine the feds as a garden hose that leaks and the water as a finite supply provided at tremendous cost by taxapyers, the distribution becomes almost as random as intentional, as the government's existence is never in danger.
A business or supplier is in constant danger of elimination and is more intentional in distributing 'wealth' thus creating a more predictable pathway that common people can rely on in their pursuit of a higher quality of life and financial security.
This is the slide presentation that the current TED conference deemed "too politically controversial".
The slides show the inverse relationship between the tax rate for the top 1% and the unemployment rate.
Anyone who's ever run a business knows that hiring more people is a capitalists course of last resort, something we do only when increasing customer demand requires it. In this sense, calling ourselves job creators isn't just inaccurate, it's disingenuous.
That's why our current policies are so upside down. When you have a tax system in which most of the exemptions and the lowest rates benefit the richest, all in the name of job creation, all that happens is that the rich get richer.
Since 1980 the share of income for the richest Americans has more than tripled while effective tax rates have declined by close to 50%.
If it were true that lower tax rates and more wealth for the wealthy would lead to more job creation, then today we would be drowning in jobs. And yet unemployment and under-employment is at record highs.
Exactly. The entrepreneur will see potential demand for a product and try to serve that demand. He's not going to pour money into a product in which there is no demand.
Republicans believe that lowering taxes mainly on the rich is a good idea, but it isn't. Shift the tax burden away from the middle class, and they'll have more disposable income to spend money on things that the wealthy make. The higher the demand, the more the entrepreneur will try to sell. It's really a basic concept. I don't understand why so many people in this country don't get it.
Quote:
Originally Posted by alphamale
Exactly how do middle class joes create jobs?
Are you implying that because they are consumers, they create jobs?
Now, if you were an entrepreneur, and provided a service, product or idea that people will pay for, I'd agree.
the problem most people have is that they only look at one part of the equation as to who creates jobs. the equation is in fact circular in nature. consumers drive the demand for a product or service, but unless you have a fair amount of money to invest in starting and running a business, you wont be able to satisfy the consumer demand. by the same token, if you raise the cost of the product or service through taxes or regulations, then the consumer wont be able to buy the product or service, and thus the demand goes down, and thus fewer jobs.
for instance, back in the early days of the automobile, cars were quite expensive, and as such were essentially toys for the well to do.
enter henry ford, wealthy industrialist. he figured out how to make his cars at a faster rate, thus making the unit cost lower, and thus the sales price lower. as the price of the automobile dropped, more people could afford them, thus driving demand, thus creating more jobs. when the depression hit, ford actually raised the wages he paid his employees so that they could buy the cars they were making, thus keeping prices low and demand up as much as possible.
as i have said before, raise taxes on the rich, and they will figure a way to pass that cost onto the consumer, same with increasing regulations on business. the costs get passed on. when that happens, either the product becomes smaller, prices go up, services get cut or become extra cost options, or jobs get cut. regardless demand is pushed lower.
as you can see it really is a circular equation. higher taxes=higher prices=lower demand. more regulation=higher prices=lower demand. lower demand=less spending=fewer jobs.
the question was do the rich really create jobs ?
The most simple response is to understand you can not create a job if you do not have the money to do so
The response doesn't change at all, and more so with your take on the subject. The rich don't create jobs. The rich don't cease to be when recessions strike... which strikes because demand falls. Which is why consumers are key to job growth. Rich people don't "create jobs" in vacuum.
Consumers demand a product and then the rich invest in expanding a business and hire more to meet demand
In other words, rich try to meet demand for having the means to start/expand a business, an effect brought by consumers. It begins with... consumers, a grassroots movement rather than trickle down.
The response doesn't change at all, and more so with your take on the subject. The rich don't create jobs. The rich don't cease to be when recessions strike... which strikes because demand falls. Which is why consumers are key to job growth. Rich people don't "create jobs" in vacuum.
i know when i need a job i prefer applying with people or companies who actually have money.
i know when i need a job i prefer applying with people or companies who actually have money.
Were there people with money when the economy was losing over 4 million jobs a year? A simple yes or no will suffice for now.
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