The Fiction That Rich People Create The Jobs

[sandinista]

I think everyone here already knows this is a fiction, as does pretty much everyone...period, just thought I would share.

Finally, A Rich American Destroys The Fiction That Rich People Create The Jobs

In the war of rhetoric that has developed in Washington as both sides blame each other for our economic mess, one argument has been repeated so often that many people now regard it as fact:

Rich people create jobs.

Specifically, entrepreneurs and investors, when incented by low taxes, build companies and create millions of jobs.

And these entrepreneurs and investors, therefore, the argument goes, can solve our nation's huge unemployment problem — if only we cut taxes and regulations so they can be incented to build more companies and create more jobs.

In other words, by even considering raising taxes on "the 1%," we are considering destroying the very mechanism that makes our economy the strongest and biggest in the world: The incentive for entrepreneurs and investors to build companies in the hope of getting rich and, in the process, creating millions of jobs.

http://www.businessinsider.com/rich-peo ... bs-2011-12

[Tero]

See my last story at signature.

[kiki5711]

As I said before. The corporations DO create jobs. EXCEPT THEY ARE NOT IN USA. They are creating jobs in third world countries for cheap labor which makes them more money (then they find a way not to be taxed on it) and then have the GALL to bring the product back here for us to buy.

[FBM]

We must "incent" people to stop using that word as a facking verb.

[Hermit]

As I said before. The corporations DO create jobs. EXCEPT THEY ARE NOT IN USA. They are creating jobs in third world countries for cheap labor which makes them more money (then they find a way not to be taxed on it) and then have the GALL to bring the product back here for us to buy.

...where everybody boycotts them because they refuse to buy goods produced overseas by cheap labour.

[Azathoth]

I'm pretty sure if you added up the numbers small business has a lot more to do with job creation than huge corporations. Putting the tax breaks in the small business arena would help a lot more economically than lining shareholders pockets

[Hermit]

I'm pretty sure if you added up the numbers small business has a lot more to do with job creation than huge corporations. Putting the tax breaks in the small business arena would help a lot more economically than lining shareholders pockets

The central point the article makes is that job creation depends on mass consumption more than mass production. Top marginal tax rates don't enter into it either way. You can't sell a hundred million i-phones unless a hundred million people not only want one, but also have the spare money to buy one.

[kiki5711]

Tax Evasion Costing The World Trillions Of Dollars: Report


http://www.huffingtonpost.com/2011/12/1 ... f=business

[Clinton Huxley]

Rich people secrete jobs like aphids secrete honeydew. Just ask Seth.

[Azathoth]

I'm pretty sure if you added up the numbers small business has a lot more to do with job creation than huge corporations. Putting the tax breaks in the small business arena would help a lot more economically than lining shareholders pockets

The central point the article makes is that job creation depends on mass consumption more than mass production. Top marginal tax rates don't enter into it either way. You can't sell a hundred million i-phones unless a hundred million people not only want one, but also have the spare money to buy one.

I don't disagree with that my point is that if you give tax breaks to small business they are more likely to use the money to expand and create more jobs. It also give incentive for people to go into self-employment. Giving tax breaks to vast corporations just increases shareholder dividends

[Berthold]

Whenever there's a discussion about higher taxes for huge incomes and fortunes, the conservatives (we have a coalition government) say, "Capital is a shy animal; if you harrass it, it will go away."

However, during the long time when the USA had a limit tax rate of 90%, did Rockefeller, Ford et al. emigrate to Switzerland or the Cayman Islands?

[Hermit]

I'm pretty sure if you added up the numbers small business has a lot more to do with job creation than huge corporations. Putting the tax breaks in the small business arena would help a lot more economically than lining shareholders pockets

The central point the article makes is that job creation depends on mass consumption more than mass production. Top marginal tax rates don't enter into it either way. You can't sell a hundred million i-phones unless a hundred million people not only want one, but also have the spare money to buy one.

I don't disagree with that my point is that if you give tax breaks to small business they are more likely to use the money to expand and create more jobs. It also give incentive for people to go into self-employment. Giving tax breaks to vast corporations just increases shareholder dividends

You're talking to someone who has owned and run a small business for 16 years. Let me tell you this now: Tax rates had no influence at all on my decision to start it, nor on my decision to get out of it. Nor did they influence the dozens - perhaps hundreds - of people running their own small businesses that I met during that time.

[Azathoth]

So you don't think alleviating some of the cashflow pressures on new or expanding small businesses is a good idea economically?

[Coito ergo sum]

In the US, most jobs are created by small businesses.

They aren't "rich," generally speaking. But, they are entrepreneurial and very hard working. They are also quite often incorrectly labeled as "rich."

They are also the ones that are hardest hit by higher taxes on businesses, and more onerous regulations. The large corporations are more easily able to structure their businesses to avoid taxes and to soak up the cost of regulations through economies of scale.

[Coito ergo sum]

As I said before. The corporations DO create jobs. EXCEPT THEY ARE NOT IN USA. They are creating jobs in third world countries for cheap labor which makes them more money (then they find a way not to be taxed on it) and then have the GALL to bring the product back here for us to buy.

In many places the "cheap labor" is still paid far higher than what those other countries are used to. Take India, for example, and all of the telephone customer service companies that are set up over there. They welcome those jobs, and what is considered "cheap" here makes people wealthy there.

In many countries, like Brazil for example, a business can pay a high Brazilian wage and still be paying a very low American wage. That's because in Brazil about 1/2 the population makes less than $800 a month. So, offer them $1000 a months, and you'd have people beating a path to your door, and you'd be improving their wages by 25%.