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jollyreaper2112

(1,941 posts)
Sun Feb 2, 2014, 01:40 PM Feb 2014

Rich people don't create jobs; customers do

http://www.businessinsider.com/rich-people-do-not-create-jobs-2011-12

It's a great read. The basic point is the boss always goes on about how he isn't running a charity. That's right! He's not going to employ people when he's not turning a profit. That's charity thinking. So he may start a business but if people aren't buying, he's folding.

The comparison made in the article is a tree. The seed didn't become a tree all by itself. Without the right soil, good air and sunshine, it's going to sprout and put forth its first leaves and die. So yeah, you couldn't have the tree without the seed and the DNA inside but you also can't have the tree without everything else.

One other point about businesses. They aren't in the business of providing jobs unless its for idiot nephews. They are in the business of being as efficient as possible. Anything that sheds jobs and maximizes profits is fine. If they can get rid of every American worker, they'll do it in a heartbeat.

Businesses are about creating jobs every bit as much as they are about paying taxes: they want to do as little of it as possible, use every trick to avoid it and regret every dime spent on it.
12 replies = new reply since forum marked as read
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Rich people don't create jobs; customers do (Original Post) jollyreaper2112 Feb 2014 OP
Lower Taxes on the Wealthy REDUCE the incentives to create Jobs FreakinDJ Feb 2014 #1
Exactly! Adrahil Feb 2014 #2
The term "Job Creators" is a slap in the face to a free people Vox Moi Feb 2014 #3
In an economy which is mostly based on consumerism, consumers are the real job creators Major Nikon Feb 2014 #8
Another thing jollyreaper2112 Feb 2014 #4
Hanauer is on target. gulliver Feb 2014 #5
Great article jsr Feb 2014 #6
My clients need to earn decent livings to be able to afford kestrel91316 Feb 2014 #7
Can't be stressed enough, Not only that, the notion really angers conservatives Populist_Prole Feb 2014 #9
the rite has been eliminating customers since nixon. pansypoo53219 Feb 2014 #10
This is also why a higher minimum wage generally won't cause layoffs. thesquanderer Feb 2014 #11
I am biased jollyreaper2112 Feb 2014 #12
 

FreakinDJ

(17,644 posts)
1. Lower Taxes on the Wealthy REDUCE the incentives to create Jobs
Sun Feb 2, 2014, 02:10 PM
Feb 2014

That's RIGHT

By reducing the tax burden on Corporations and the Wealthy we have effectively reduced the incentives to invest in businesses and take "Risk" in a real world market place.

Allowing Corporations to hold money "Off-Shore" untaxed has only created abuses of the Corporate Tax Code and stagnation of Middle Class Wages

 

Adrahil

(13,340 posts)
2. Exactly!
Sun Feb 2, 2014, 02:16 PM
Feb 2014

Demand drives supply and it always has. If you make widgets and you have a warehouse full of them, you won't hire people to make more just because you have the money to do so. You hire more people when the demand for your product outstrips your ability to produce it.

Want more jobs!? Create more demand. We've known this for decades, but supply-side idiots manage to keep people buying their bullshit. It's unbelievable.

Vox Moi

(546 posts)
3. The term "Job Creators" is a slap in the face to a free people
Sun Feb 2, 2014, 02:47 PM
Feb 2014

Slave owners are job creators.
Monarchs and Nobles are job creators.

"Job creation" is meant to justify the existence of oligarchy.
Even "Divine Right" sounds better than that.

Major Nikon

(36,827 posts)
8. In an economy which is mostly based on consumerism, consumers are the real job creators
Sun Feb 2, 2014, 04:09 PM
Feb 2014

Jobs are created by an excess of demand, not an excess of supply.

jollyreaper2112

(1,941 posts)
4. Another thing
Sun Feb 2, 2014, 02:49 PM
Feb 2014

Lower corporate taxes means it's easier to take money out of the business. Hi corporate taxes on profits means that there's more incentive to roll the money back into the business because that way you can increase the value of your assets.

gulliver

(13,200 posts)
5. Hanauer is on target.
Sun Feb 2, 2014, 02:56 PM
Feb 2014

I read the book he co-authored, The Gardens of Democracy and one of the books it is based on, The Origin of Wealth. The world can't adopt these ideas soon enough.

 

kestrel91316

(51,666 posts)
7. My clients need to earn decent livings to be able to afford
Sun Feb 2, 2014, 03:36 PM
Feb 2014

my services. And my clients have been economically devastated by the drive to enrich a few wealthy at the expense of the middle class and poor.

Populist_Prole

(5,364 posts)
9. Can't be stressed enough, Not only that, the notion really angers conservatives
Sun Feb 2, 2014, 04:30 PM
Feb 2014

I notice in talking ( arguing ) with conservatives; ones other than paranoid gun nuts or racists, that they get really defensive, like Defcon 5, when I trash supply-side economics and promote demand-side. It's like holding a cross in front of a vampire's face. They can argue or disagree on any other point, but questioning trickle-down really really puts them on edge and they get almost panicky in defense of it.

I say it's cognitive dissonance because to them it's a tribal partisan article of faith and the empirical evidence mounting against it is too much for them.

There is no way they can chicken/egg their way out of it: No citizen can be a consumer without in turn being paid for producing first.

thesquanderer

(11,999 posts)
11. This is also why a higher minimum wage generally won't cause layoffs.
Sun Feb 2, 2014, 04:49 PM
Feb 2014

In general, businesses are already operating with no more employees than they must have in order to function. Like you say, they are not charities. If they need x employees, that's what they hire, and they're not going to lay one off because he's about to cost another $50 or $100 a week. If they could get by without him, he'd already be gone.

The possible exception is if higher wages causes a company to raise its prices. If the higher prices then lead to lower sales, they might be able to then get by with fewer employees. But that's a kind of "perfect storm" scenario that will be an exception rather than the rule. Often, a company's sales should increase with higher prevailing wages because more people will be able to afford their product or service.

jollyreaper2112

(1,941 posts)
12. I am biased
Sun Feb 2, 2014, 11:15 PM
Feb 2014

I tend to disregard the arguments of people who are benefitting from a bad situation and say that it is a necessary evil they cannot change.

How many times in history have we been told reforms were impossible right up until they were forced through and the world didn't end?

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