Tuesday, June 04, 2013

Nick Hanauer "Rich people don't create jobs"

I agree that it is likely that rich people usually don't hire people unless they perceive that there is unmet demand for what those people would produce, and that they, the rich will get still richer as a result of the production and sale of those goods and services by others. Thus, as economists suggest, if people don't have jobs and consequently don't have the money to buy things that they want and need, a simple way to get the economy moving is to get those people more money. They will go out and buy stuff, and businesses will hire people to produce more stuff, and the folk with jobs will be able to buy stuff without government subsidies. Besides, as Warren Buffet has said, it isn't fair that he, a billionaire, is taxed at a lower rate than his secretary. But I also think that long term economic progress is built on a foundation of finding better ways to do things. If people hadn't developed electric power systems, electrical devices, electronics, etc. we would be a whole lot poorer. Some of the billionaires got that way be building new companies that got big and profitable by doing things better, or by doing new things that people wanted done, and they did create jobs. Most of the rich people today did not get rich by doing that! Not taxing those who are already wealthy is not likely to promote wealth creating innovation in society.

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