"The Rich are Not the Job Creators!"

[Sunstone]

According to billionaire Nick Hanauer, "the rich are not the job creators". Instead, jobs are created by a feedback mechanism between consumers and businesses. Check out this short, but previously censored, TED talk by Hanauer for an explanation (The video of Hanauer's five minute talk is at the bottom of the page).

So, do you think Hanauer knows what he's talking about? Are jobs created by the rich, or by a feedback mechanism between consumers and businesses? And should the rich be getting more tax breaks to create jobs if there is little or no evidence they are actually the job creators?

 

[nnmartin]

If I earn millions a year I can create jobs in many ways::sarcastic

1. by hiring servants to do all my chores
2. by hiring servants to stand around and make me look good
3. by abolishing the minimum wage and then hiring a few extra staff to work at $2 per hour.

now give me a tax break and if those despicable poor people don't like it then let them eat cake!

ha ha

 

[Nashitheki]

If I earn millions a year I can create jobs in many ways::sarcastic

1. by hiring servants to do all my chores
2. by hiring servants to stand around and make me look good
3. by abolishins the minimum wage and then hire a few extra staff to work at $2 per hour.

now give me a tax break and if those despicable poor people don't like it then let them eat cake!

ha ha

"2. by hiring servants to stand around and make me look good"

Excellent idea. Nothing more important than looking good. Be sure to post plenty of photos. If any of these leftists give you any crap, then offer them a brief account of your climb to the top(stepping on heads and exploiting others). If that doesn't get to them, appeal to their sense of pity. I can assure you, they know pity.

 

[muhammad_isa]

Are jobs created by the rich?

No ! There's a natural balance between economic prosperity & recession.

The evil financial system which we are all involved with ( either by love or force), is causing severe inbalance.

God has warned us about the evil of usury, and if mankind as a whole turns away from truth, the resulting castrophies that follow (including hate of one another) is the consequence!

 

[Jayhawker Soule]

According to billionaire Nick Hanauer, "the rich are not the job creators". Instead, jobs are created by a feedback mechanism between consumers and businesses.

How do businesses get started?

 

[Sunstone]

According to billionaire Nick Hanauer, "the rich are not the job creators". Instead, jobs are created by a feedback mechanism between consumers and businesses. Check out this short, but previously censored, TED talk by Hanauer for an explanation (The video of Hanauer's five minute talk is at the bottom of the page).

So, do you think Hanauer knows what he's talking about? Are jobs created by the rich, or by a feedback mechanism between consumers and businesses? And should the rich be getting more tax breaks to create jobs if there is little or no evidence they are actually the job creators?

Another video of Hanauer -- from an interiew: [youtube]hL8OfEKXRoE[/youtube]
Nick Hanauer: 'Radical Inequality is Going to Destroy' Economy - YouTube

 

[Sunstone]

How do businesses get started?

So far as I know, there are several things necessary to start a business. But a key and necessary component of any successful business is economic demand (Unless you can think of a business that does not crucially rely on selling a product or service?). So to say "the rich create jobs" maybe a myth in so far as there is much more involved in job creation than mere capitalization.

 

[MysticSang'ha]

How do businesses get started?

By investment capital for initial resource purchasing, a tax structure, infrastructure, and grassroots and/or paid advertising to get clients through the door.

I guess the size of all of these is determined by the willingness of the ownership to invest "x" amount of dollars toward the start up, franchise, or expansion. So, the wealthy can legitimately risk less than other classes with their money, so they have the discretion to invest a larger sum.

I just got some coffee. I hope that was relevant.

 

[Sunstone]

By investment capital for initial resource purchasing, a tax structure, infrastructure, and grassroots and/or paid advertising to get clients through the door.

None of that is much good in the absence of economic demand -- or is it?

 

[MysticSang'ha]

None of that is much good in the absence of economic demand -- or is it?

Demand, though, might not be an already existing one. There might be an idea floating around that once becomes sellable, creates a demand in the market.

BTW, I don't disagree with you, Phil. I'm just offering what my fluffy Teddy Bear slippers are telling me. Or yelling to me since they're under the bed.

It's another detail that probably the wealthy hook their lines to and cast into the debate of why their tax burden should be minimized. But don't look at me. My slippers are saying this.

 

[Sunstone]

Demand, though, might not be an already existing one. There might be an idea floating around that once becomes sellable, creates a demand in the market.

Imagine what the economy would look like it it were commonplace for ideas, once they became salable, to actually create demand. For one thing, the guy who sold pet rocks while the fad lasted would still be in business -- since he could create a demand for them, rather than be at the mercy of a passing fad. People would be driving Edsels, since the car companies could create demand for their lemons. And no well capitalized start up business would ever need to worry about whether it was going to find customers for its product or service -- it could just create them. It would be a different world if you could routinely create demand in any massive way.

 

[Kathryn]

Demand can be there all day, but without supply (ie, someone taking the risk and investing in starting a business), it's not only useless - it's frustrating.

Considering the high risk of failure during the first year or so of a new business, I'd say the risk is high.

Let's say you're hungry. You can be hungry all day long, but if you don't have a store to go to to buy groceries, your hunger is nothing but a negative feeling. It can prompt you to do things that are both negative or positive - you can go hunt in the bushes for blackberries, or you can steal a blackberry pie off the neighbor's window sill. But your hunger isn't anything that's noble, or something that you put any effort into or worked toward, or risked anything to experience. It's just...hunger.

In other words, it's a passive thing. Providing the supply to meet that demand requires action - and money, and risk, and infrastructure, and expertise, and knowledge, and a group effort, and professionalism. Hunger requires none of that.

 

[Sunstone]

So, Kathryn, are you saying that the creation of jobs is as simple as giving the rich more money? Or do you think there's more to it than that?

 

[Thief]

Watch this!

There are four basic motivations...
Faith, politics, military, and the economy.
If you want to move your fellow man you might stand behind a pulpit and convince him...God wants you to.(faith)

Or stand behind a podium and say to him....I have the plan...I have the dream.(politics)

Or get yourself a uniform and control of a militia and install martial law.

Or, last but not least, money.
There's money in it for me...a paycheck for you...the time clock is over there.

Jobs, are in deed a result of need. Find the need and fill it.
Our technology has overrun that fulcrum point.

When I was unemployed, my grandfather (having lived as a man in the Great Depression) did ask....
'Why can't you find work?'

I replied...'In your day a machine did no more than give you leverage to do the work. Nowadays, the machine replaces the workmen many times over.'

Food, clothing, shelter, and transportation are nowadays, the needs.
Everything else is want.

Technology can fill every need...yes it can.
The wanting is there but it takes excess earnings to buy them.
When the money fails to flow down the pyramid....the wanting is the first to fail...and people use their money only for need.

No one seems to notice....
The government cannot create jobs....might seem like it, in small ways.
But it's not the job of the government to control labor....might seem like it.

It's that money flow that counts.
Can the rich guy create jobs?....more readily than anyone else.
What's the hold up?....The top of the pyramid won't let go of the money.

Without capital I can't form my own tool room.
I spend myself chasing one check after another.
I am not in control.
It's the next man up...the one with the money.

 

[bobhikes]

According to billionaire Nick Hanauer, "the rich are not the job creators". Instead, jobs are created by a feedback mechanism between consumers and businesses. Check out this short, but previously censored, TED talk by Hanauer for an explanation (The video of Hanauer's five minute talk is at the bottom of the page).

So, do you think Hanauer knows what he's talking about? Are jobs created by the rich, or by a feedback mechanism between consumers and businesses? And should the rich be getting more tax breaks to create jobs if there is little or no evidence they are actually the job creators?

It has always been a political ploy to put the rich in a good position. It is simple if you follow economics. The larger stonger the middle class the better you economy will be.

Politicians can get large sums of money from the 1% by stressing certain stances. Although the middleclass has more money overall they do not have common bonds so raising money from the middleclass is not easy to do. The Middle Class wants to be wealthy, so the politicians premote the ability to become rich and then use the fear of losing wealth if they become rich to get their votes.

It is good politics but pretty funny that it constantly works.

 

[Jayhawker Soule]

None of that is much good in the absence of economic demand -- or is it?

Of course demand is necessary - and one demand is the demand for demand, creating an entire, robust, and multifaceted industry. Where, for example, was the iPod 'demand' when you were young?

I simply have problems with posts such as this because they tend to promote over simplification and diatribe. To pretend that the rich create jobs in isolation is absurd. But to pretend that they play no critical role in the process is equally absurd. Jobs flow from meeting needs. They also flow from innovation, and innovation without capitalization is typically stillborn.

So this thread will no doubt meander for page after page. Intellectual frauds will barricade themselves on both sides of Das Kapital. Liberals will rail against imperialist greed. Conservatives will decry the catastrophic failure of socialism. And all will do so using computers brought to you by the rich and those who invested in their endeavors.

 

[Revoltingest]

It's like asking which link makes a chain.

 

[Thief]

Of course demand is necessary - and one demand is the demand for demand, creating an entire, robust, and multifaceted industry. Where, for example, was the iPod 'demand' when you were young?

I simply have problems with posts such as this because they tend to promote over simplification and diatribe. To pretend that the rich create jobs in isolation is absurd. But to pretend that they play no critical role in the process is equally absurd. Jobs flow from meeting needs. They also flow from innovation, and innovation without capitalization is typically stillborn.

So this thread will no doubt meander for page after page. Intellectual frauds will barricade themselves on both sides of Das Kapital. Liberals will rail against imperialist greed. Conservatives will decry the catastrophic failure of socialism. And all will do so using computers brought to you by the rich and those who invested in their endeavors.

Have read 'Animal Farm'?

 

[Sunstone]

To pretend that the rich create jobs in isolation is absurd. But to pretend that they play no critical role in the process is equally absurd. Jobs flow from meeting needs. They also flow from innovation, and innovation without capitalization is typically stillborn.

Have you had a chance yet to watch the Hanauer video referenced in the OP? I don't think Hanauer is pretending that the rich play no critical role in the process. Instead, it appears he is arguing against the simplistic notion that the rich are all by themselves decisive in job creation, and the seemingly consequent notion that cutting taxes on the rich will result in job creation.

 

[Sunstone]

It might help if folks would watch the video referenced in the OP before commenting.