Posted on 11/30/2013 11:16:07 AM PST by SeekAndFind
As America struggles with high unemployment and record inequality, everyone is offering competing solutions to the problem. In this war of words (and classes), one thing has been repeated so often that many people now regard it as fact.
"Rich people create the jobs."
Specifically, by starting and directing America's companies, entrepreneurs and rich investors create the jobs that sustain everyone else.
This statement is usually invoked to justify cutting taxes on entrepreneurs and investors. If only we reduce those taxes and regulations, the story goes, entrepreneurs and investors can be incented to build more companies and create more jobs.
This argument ignores the fact that taxes on entrepreneurs and investors are already historically low, even after this year's modest increases. And it ignores the assertions of many investors and entrepreneurs (like me) that they would work just as hard to build companies even if taxes were higher.
But, more importantly, this argument perpetuates a myth that some well-off Americans use to justify today's record inequality — the idea that rich people create the jobs.
Entrepreneurs and investors like me actually don't create the jobs -- not sustainable ones, anyway. Yes, we can create jobs temporarily, by starting companies and funding losses for a while. And, yes, we are a necessary part of the economy's job-creation engine. But to suggest that we alone are responsible for the jobs that sustain the other 300 million Americans is the height of self-importance and delusion.
So, if rich people do not create the jobs, what does?
A healthy economic ecosystem — one in which most participants (especially the middle class) have plenty of money to spend.
(Excerpt) Read more at businessinsider.com ...
Exactly... And the converse being that when new taxes were levied on big ticket items, like yachts, a lot of people LOST THEIR JOBS!
Mark
Has henry blodgett ever considered voluntary committment? What a clueless loon.
Another leftwing screed from “Business Insider”....
Hmm, like a lot of economic “experts”, this gasbag doesn’t say a thing about how much value the dollar has lost via inflation, which is an invisible and far more damaging tax.
Tax rates and wages really don’t matter much when the dollar is being devalued faster than people are making it. I’ve been saying that to every “Tax the rich” and “We need a living wage” gasbag I run into. Three guesses what their reply usually is.
Actually, they believe government is the root/route of all prosperity.
A healthy economic ecosystem — one in which most participants (especially the middle class) have plenty of money to spend.
Economic Ecosystem? ROFL.
And, just how does the middle class attain plenty of money to spend if the "rich" aren't the source of that income stream via jobs created from private business growth? Government checks?
Frikkin' moron.
There are no jobs without wealth creation, regardless of the scale. Inequality is an indicator of economic growth. that’s about it.
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