Rich People Don't Create Jobs...

Just a thought...

[video=youtube;CKCvf8E7V1g]https://www.youtube.com/watch?v=CKCvf8E7V1g[/video]

 

Didn't watch the video.. at work...

But did find this while trying to find a transcript...

www.forbes.com/sites/timworstall/2012/05/19/the-ignorance-of-nick-hanauers-ted-speech/

 

I agree with this, I wish more politicians understood it, and used it to promote the economy.

Edit-
This is either really uninteresting or people are having a hard time arguing against it.

 

According to this it's because the rich are given tax breaks to create jobs but it only serves to make them richer. By that logic, there are people who don't pay any tax and in fact recieve a tax refund they didn't earn. Why aren't they rich?

 

Absolutely. People also fail to take into account that tax rates don't harm someone's ability to hire workers. If I hire 5 new workers at 50k a year I'm obviously not paying a profit tax on that 250k because it's an EXPENSE, not a profit. The argument that higher tax rates discourage people to invest or make more money in business is also flawed. Who in their right mind would choose not to make more money over making more money? If I have 1 million I can either choose to stash in the bank or invest it and earn 1.5 million back, with a 50% tax on my earnings, I'm obviously going to invest it, 1.25 million net after tax is still more then 1 million. You can also research the subject and easily find that tax cuts do nothing to promote economic growth and in fact lead to greater income inequality, unless those tax cuts are given to the middle or lower class of course, and even then only to a certain point.

http://www.businessinsider.com/study-tax-cuts-dont-lead-to-growth-2012-9

 

Unless all rich people get their money through stock gambling, there's no logical way that statement can be true.

 

Makes sense...................... for the past three decades the best way to rise to the top of most companies was to figure out the best way to lay off the most North American workers and transfer those jobs to Mexico or some other third world nation where labor costs and environmental standards were low.

The film "Death by China" was interesting...... and obviously at least partly correct.

Perhaps it is time to begin to look at money itself a little differently?

http://www.politicalforum.com/econo...our-billion-dollars-how-can-we-do-2013-a.html
President Lincoln saved taxpayers four billion dollars...how can we do this in 2013?
I was given a copy of this article in 1994.

After reading this article those lectures from Economics 101, 212 and Economic History sure took on a whole new level of importance.

http://www.michaeljournal.org/lincolnkennedy.htm
Melvin Sickler:

OK, so how do we apply this information in 2013 without scaring the guys on Wallstreet, who have a tendency to go out on their balconies and jump, if investors get scared....which actually could happen even if government did something intelligent!!!!!???????

 

try getting a person on welfare to start a business?...and not selling drugs either as the business...

 

cause they do not make enough.... but the tax cuts for the poor and working class help businesses.. cause they are consumers.... the more money they have to spend the more they buy, the more the business create jobs

you give the tax cuts to the bottom, jobs are created, give it to the 1% it goes into a bank as they do not need to create jobs to get that money, it's already theirs

 

100% true, rich people don't create jobs unless consumers exist with money to buy their products, the consumers are why jobs are created, the rich would create the jobs (tax cuts or not) if the consumers had money to spend

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The effective tax rate for the bottom is already negative... so where are all of the new jobs?

 

It enrages me that people look at a system where a small amount of people are in control, everyone else's livelihoods depend upon them, and we think that's okay. We think that the solution is to give those people more control.

It's taboo in America to point out that this is just a part of capitalism. It's taboo to criticize capitalism at all. We all have to pretend that it's perfect in public or else put up with a bunch of people who don't actually know what socialism is.

 

When a poor guy gives me a job, perhaps I'll buy into this. Until then, it's all just political rhetoric.

 

I work for a couple of rich guys. They created 30 very high paying jobs just in one office. Its very simple, the more they are taxed the less employees they can hire and the lower the salaries get. It is a business after all. The more money they make the more I make in bonuses. The harder I work the more money they make and the more they can hire someone. We even have some 23 yr olds pulling 6 figures and we are all extremely happy.
To this date, Ive never been able to collect a salary from a poor person.
Poor people Im available. Call me. Im always open to a higher salary plus Id love to see how that math works.

 

Poor people create jobs for democrats to take advantage of them.

 

The company I work for was originally started from nothing. Eventually the company and the man who started it 40ish yrs ago, were worth billions. The people who currently run the company are all rich. Yeah, I'd say rich people create jobs.

If you want to play the chicken and the egg game where companies can't exist without consumers but people can't consume anything without someone else to make the stuff they want and around we go......&#*(@)@! stupid.

 

That your founder became wealthy was not the issue. That the employees runnung the company are also wealthy is also not the point.

There is no problem like chicks and eggs. You know who your founder is.

Btw, college graduates start the majority of successful businesses in America.

 

Investors created jobs no matter how much they earn. Investors furnish money for startups, capital improvements for already existing companies and money to expand companies. All of these things increase production and open of jobs at all levels of the economy. The fact that anyone doubts this is just an example of just how economically ignorant many people are. If you tax investment income then those jobs don't happen. You tax it enough and that money goes somewhere else. Venture capitalism is the riskiest form of investment. You invest in ten ideas 5 go broke taking your investment with them, 4 might break even or a little better but maybe that tenth one is the next IBM or the drug company that finds a non surgical cure for skin cancer and you get rich, but your investment helps generate thousands of jobs and/or save thousands of lives. And you want to kick these people in the mouth?

 

what an immensely simple explanation of an enormously complex problem... if only it was that simple, to steal his line, we'd be drowning in jobs...

I'd like to point out the ironic conflicting points between liberals and conservatives in history... when Bush sent out stimulus checks he was demonized for doing so, yet according to this videos simple interpretation of economics, that was the MOST effective thing in history that ever could have been done to help the economy... and Obama bailed out billionaires and millionaires claiming it was needed to help the middle class, which according to this videos simple interpretation of economics, was the LEAST effective thing in history that ever could have been done to help the economy...

so in one hand, a conservative did something this speaker says was the correct thing yet he was demonized for it, and on the other hand a liberal did something this speaker says was the worst thing he could have done yet he was cheered for doing it... its just chalked full of ironies in the history... now I will admit, I am cherry-picking... hindsight gives us that fun ability, as we could point out things both sides have done wrong, according to the logic in this video... however that brings me back to the point, this is an insanely over simplistic view of how it all works... it sounds great and fuzzy, but its simply not the reality...

he touches on a very fair point, that I absolutely do agree with, that if nobody can afford to buy your product... this is true... but who are the early adopters to many expensive products that are common place today, that would not be present without wealthy people? (like I said, he had a simple answer for an insanely complex topic)... cellphones? you wouldn't have cellphones today if wealthy people weren't willing to pay the $4000 for the first cellphone commercially available, not to mention the hundreds for the monthly fee's... what about cars? tvs? electricity for crying out loud... none of this would be here today without wealthy people consuming it first to ultimately drive down costs to where we can afford it...

now he touches mostly on just the topic of taxes, as if somehow thats the root cause of all this evil and if we simply didn't give wealthy people tax breaks, well we at least wouldn't be wasting money making them wealthier for no reason? now to get back to the SAME point, in another angle... he made the point if nobody is willing to pay the cost of his goods then no tax breaks will create jobs... but thats simply not true... there are plenty of tax breaks given so his expensive products are now cheaper and more available to the consumer, and this does work... in some ways its just to break the high cost entry barrier of new technology of lets use solar cells, or wind turbines, or electric cars... many of these cars were not competitive cost wise compared to traditional alternatives, but people were given a tax break to encourage sales... so using his logic, that tax break shouldn't have helped sell a single car, panel, or turbine... but it did... problem is, when the tax breaks end, so do the sales... so the tax breaks did exactly what he said was not possible, but only the wealthy consumed those products, because it was still out of reach of the low and most middle class people... unfortunately in reality, competition from other countries made a better cheaper faster product and put these companies out of business because they were not protected from the products another government helped discount through currency manipulation or subsidies...

once again... this is a horrifically complex issue that is over simplified in this video... it pains me to see how simplistic it was approached...

but the subtle message, consumers have power, and should exercise that power, is true... spend your dollars wisely to get the results you want in business... the companies will follow the money and change to get it, trust me... but if people don't exercise this power, they will make it as most profitable for them as possible... why shouldn't they... they have a duty to their owners... thats not a dirty thing...

 

Well said. I was down on my luck before entering the Navy and a rich man gave me a job sitting on the ground in the middle of a Texas August using a hatchet to chop the ragged edge of a newly created asphalt parking lot in order to square up the sides. It was a large parking lot and it was hot as Hades and he paid me minimum wage. But that was in fact enough to tide me over until the Navy's entry date for basic training rolled around. He did indeed create a job just just for me and so . . . I . . . was . . . grateful.

 

China. If you want jobs in the local economy, then buy local products at local prices.

 

The middle class guys buying products and services are what creates jobs you get.

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Fundamental business math flaw. Employees wages are paid with pre-tax dollars.

 

People with money to spend is demand which creates a vacuum that creates jobs.

You can make a zillion desirable widgets, but if people don't have money to buy them, you won't sell them.

 

Except we don't have a problem with lack of capital in our economy. And haven't for years. There are trillions of dollars sitting in banks, business, and individual's portfolios or offshore bank account.

Creating incentive for more savings and investment isn't going to help when we already have trillions of capital laying around.

But what our economy is suffering from is lack of demand. A middle class gutted from "trickle down" economics along with Republican austerity has resulted in that.

 

Tax breaks have an infinitesimal effect on the wealth of the ultra-rich. They affect the entreprenurial rich: those with engineering degrees and the such who earn ~$300,000pa.

The ultra-rich - the top 1%, gain far, far more through government subsidy and intervention in the economy. A single regulation passed by an allied legislature can net them billions in profits. Government is not the solution to their obscene wealth, it is the cause.

The entire financial industry is a government created cartel. Most all of their profit is subsidy. The oil, steel, etc industries function on monopoly and protectionism. Even grocers benefit from the minimum wage, regulation which forces out competitors, and monetary policy which lets the rich guy club get the first grab at counterfeited cash before inflation kicks in.

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Rich people don't create jobs - but voluntary association does.