Showing posts with label jobs and tax policy. Show all posts
Showing posts with label jobs and tax policy. Show all posts
Monday, January 05, 2015
Monday, June 25, 2012
Who really creates jobs?
Business leader, Nick Hanauer, presented the following speech at the TED conference. His thesis may surprise you. Hanauer, a very successful business owner/creator, argues that business owners don't create jobs. He debunks the popular myth that tax breaks to the rich result in the creation of more jobs.
But, if not them, then who does create jobs in our nation? Watch his short address and react.
[You may want to read Hanauer's essay in Bloomberg's Business Week here. My thanks to Rev. Gerald Britt for putting me onto Hanauer! Once I saw Hanauer's presentation, I remembered that TED refused to post it, deeming it "too controversial in the current political climate.]
But, if not them, then who does create jobs in our nation? Watch his short address and react.
[You may want to read Hanauer's essay in Bloomberg's Business Week here. My thanks to Rev. Gerald Britt for putting me onto Hanauer! Once I saw Hanauer's presentation, I remembered that TED refused to post it, deeming it "too controversial in the current political climate.]
Wednesday, December 14, 2011
A Voice from Business on Creating Jobs
[This just in from Bloomberg Business Week! Read it all before you react. I think some will find this surprising and informative.]
Raise Taxes on Rich to Reward True Job Creators
By Nick Hanauer
December 07, 2011 10:22 AM EST
December 07, 2011 10:22 AM EST
It is a tenet of American economic beliefs, and an article of faith for Republicans that is seldom contested by Democrats: If taxes are raised on the rich, job creation will stop.
Trouble is, sometimes the things that we know to be true are dead wrong. For the larger part of human history, for example, people were sure that the sun circles the Earth and that we are at the center of the universe. It doesn’t, and we aren’t. The conventional wisdom that the rich and businesses are our nation’s “job creators” is every bit as false.
I’m a very rich person. As an entrepreneur and venture capitalist, I’ve started or helped get off the ground dozens of companies in industries including manufacturing, retail, medical services, the Internet and software. I founded the Internet media company aQuantive Inc., which was acquired by Microsoft Corp. in 2007 for $6.4 billion. I was also the first non-family investor in Amazon.com Inc.
Even so, I’ve never been a “job creator.” I can start a business based on a great idea, and initially hire dozens or hundreds of people. But if no one can afford to buy what I have to sell, my business will soon fail and all those jobs will evaporate.
That’s why I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is the feedback loop between customers and businesses. And only consumers can set in motion a virtuous cycle that allows companies to survive and thrive and business owners to hire. An ordinary middle-class consumer is far more of a job creator than I ever have been or ever will be.
Theory of Evolution
When businesspeople take credit for creating jobs, it is like squirrels taking credit for creating evolution. In fact, it’s the other way around.
It is unquestionably true that without entrepreneurs and investors, you can’t have a dynamic and growing capitalist economy. But it’s equally true that without consumers, you can’t have entrepreneurs and investors. And the more we have happy customers with lots of disposable income, the better our businesses will do.
That’s why our current policies are so upside down. When the American middle class defends a tax system in which the lion’s share of benefits accrues to the richest, all in the name of job creation, all that happens is that the rich get richer.
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