THE BIG LIE: “Rich People Create Jobs”

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THE BIG LIE: “Rich People Create Jobs”
By Henry Blodget | Daily Ticker – Fri, Feb 3, 2012 4:06 PM EST

Friday morning the U.S. finally got a monthly jobs report that was unequivocally good: According to the BLS, 243,000 jobs were created in January, way more than expected.

Of course, this immediately led to a political fight about who or what is creating those jobs.

One of the most commonly repeated theories about job-creation is that "rich people create jobs"--specifically, rich investors and entrepreneurs who build companies that eventually employ hundreds or thousands of Americans.

This theory is often used to justify very low taxes on investors and high-income earners, under the theory that such folks have to be given an incentive to "create jobs."

But the trouble with the theory, says Nick Hanauer, is that it's just wrong.

Hanauer, an entrepreneur and investor and the author of The Gardens of of Democracy, built an online advertising firm called aQuantive that he sold to Microsoft for several billion dollars. He was one of the first investors in Amazon.com, which now employs tens of thousands of people worldwide. He also make an "eight-figure" income from his investments. So he knows a thing or two about investing, job creation, and the impact of low taxes on rich people.

What actually creates jobs, Hanauer says, is not "rich people" or "entrepreneurs," but the economic ecosystem in which companies are created. The entrepreneur and initial investors provide the "seed" that eventually leads to job-creation, but it is ultimately the company's customers that provide the demand necessary to support jobs. Without healthy customers, Hanauer says, entrepreneurs and investors can't create any sustainable jobs, so the idea that rich people create jobs is misguided.

One of the reasons our economy is struggling, Hanauer says, is the middle-class has been gutted and stripped of its purchasing power. To restore the economy to health--and reduce the unemployment rate--the buying power of the middle class has to be restored. And that, Hanauer says, can be accomplished in two ways:

First, cutting taxes for the middle-class while raising them on high-income earners.

And, second, paying middle-class workers more.
 
Both suggested solutions were shot down in a few days by zorro lim and lee yih shan..
 
Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

for those who still think rising tides lift all boats, listen to what a real businessman has to say on job creation, not some paper tiger politician.

[video=youtube;CKCvf8E7V1g]http://www.youtube.com/watch?v=CKCvf8E7V1g[/video]
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

Leongsam will disagree with him. ;)
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

Leongsam will disagree with him. ;)

Leongsam is a typical right-winger who doesn't give a hoot if the world collapses as long as he thinks he will be alright.

Right-wingers are just self-centred, self-serving idiots.
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

Rich don't create jobs.
Business create jobs.

It is consumers that create jobs.

Without consumption, there will be no business, no jobs, no rich people.
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

Leongsam is a typical right-winger who doesn't give a hoot if the world collapses as long as he thinks he will be alright.

Right-wingers are just self-centred, self-serving idiots.

Leongsam do not give a fuck as to what you say as long as he can continue to sing hosannas to smear of shit on sole of shoe LKY that he thinks saved him from eternally having to shit in a steel bucket shared with 50 Bangla families
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

why is this ted talk being banned?

it is a great talk by this guy.
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

found the reason here:

[video=youtube;N1b_Q1lprAk]http://www.youtube.com/watch?v=N1b_Q1lprAk#at=150[/video]
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

Rich don't create jobs.
Business create jobs.

It is consumers that create jobs.

Without consumption, there will be no business, no jobs, no rich people.

thanks for the summary - yup this is the gist of the video.

"If taxes on the rich go up, job creation will go down,” Hanauer says. “This idea is an article of faith for Republicans (the Right), is seldom challenged by Democrats (the Left), and has indeed shaped much of the economic landscape. But sometimes the ideas we’re certain are true are dead wrong.”
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

thanks for the summary - yup this is the gist of the video.

"If taxes on the rich go up, job creation will go down,” Hanauer says. “This idea is an article of faith for Republicans (the Right), is seldom challenged by Democrats (the Left), and has indeed shaped much of the economic landscape. But sometimes the ideas we’re certain are true are dead wrong.”

I already debunked this crap resoundingly in this post. http://www.sammyboy.com/showthread....10-billionaires-to-come&p=1577255#post1577255

This character is just playing to the crowd. It's like the Hollywood stars who opt for a Toyota Hybrid in order to create an image that they care about climate change and the environment. :rolleyes:

It also reminds me of that hypocritical humanitarian Bono who champions social equality while hiding his huge wealth from the taxman. http://www.psychophil.com/weblog/?p=1504
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

I already debunked this crap resoundingly in this post. http://www.sammyboy.com/showthread....10-billionaires-to-come&p=1577255#post1577255

This character is just playing to the crowd. It's like the Hollywood stars

This guy is talking through his arse. If you want proof that the rich create jobs, all you have to do is look at Singapore. The unemployment level is a mere 2%.

http://www.tradingeconomics.com/singapore/unemployment-rate

In France where the rich are taxed to death, the unemployment rate is 11% and rising.

http://www.tradingeconomics.com/france/unemployment-rate

People can say whatever they want. I simply concentrate on the bottom line data and no matter how you look at it, nothing alters the fact that Singapore is a very successful nation thanks to the capable leadership and management provided by the PAP.

at 2min20sec in the video, there is a chart on decreasing income tax for millionaires (the rich) vs unemployment. they are inversely correlated.

at 2min30sec, there is another chart showing tax rates from the 1940s to 2004. again, inversely correlated.

Hong Kong, the favorite point of comparison, with lower taxes than singapore, has a higher unemployment rate. "Hong Kong Unemployment Rate averaged 3.75 Percent from 1981 until 2013, reaching an all time high of 8.60 Percent in July of 2003 and a record low of 1 Percent in July of 1989" - http://www.tradingeconomics.com/hong-kong/unemployment-rate

you have debunked nothing Sam. your right wing ideals are being shattered.
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

i actually agree to what he says.

it is not just the rich who create jobs.. job creation is caused by a network of businesses set up by the rich or someone who is entrepreneurial, the sound financial and business policies by the govt and the high purchasing power of the consumers..

i agree that the purchasing power of the consumer needs to be high in order for more job creation but that is not the only part of of.. it is the whole network or sound ecosystem of the economy which causes job creation.


He mention of paying more to the middle class... i agree

i also want to point out that the poor need to have minimum wages and policies which help them to move towards middle class.

Taxes to be cut for the rich on the number of employees who are on minimum wages.

job creation is quite equal to wealth creation of the country.
 
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Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

This character is just playing to the crowd. It's like the Hollywood stars who opt for a Toyota Hybrid in order to create an image that they care about climate change and the environment. :rolleyes:

It also reminds me of that hypocritical humanitarian Bono who champions social equality while hiding his huge wealth from the taxman. http://www.psychophil.com/weblog/?p=1504

its understandable you dismiss the idea of celebrity power. only scholars are worthy of being role models :rolleyes:

as for Bono, he lost the plot after achutung baby. you're talking seriously old bananas. even aung san has been released already.
 
2013 Bay area unemployment rate : 8.6%

http://www.mercurynews.com/ci_23510892/bay-area-job-growth-california-unemployment-jobless

This is where all the billionaires set up their businesses. Google, Apple, Cisco, etc

Compare this with Detroit's 20% unemployment rate, a dying city because no rich pricks are investing resources there.

Without the rich, there is no investment. With no investment, there are no jobs.

country vs state is hardly a fair comparison. but even then 8.6% is still higher than the fed's target of 6.5%. cf Nick's talk and his data, if giving the rich more money means more job, then the US should theoretically be out of the dumps by now. but they're not.

detroit is dying due to structural shifts, not due to tax policies which is what we are arguing.

Cali has one of the highest state tax rates if i'm not mistaken.
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

you have debunked nothing Sam. your right wing ideals are being shattered.

Ignore his charts. It is possible to selectively choose data to show anything you want to support your cause.

There will always be fluctuations within any system. However, when comparing high tax welfare states vs low tax regimes, the stats over time will speak for themselves.

Take Sweden as an example.. it now has one of the highest youth unemployment rates in Europe at 24.2%.

I run an on line business and because of the low SG company tax rate compared to NZ, I prefer to locate the physical aspects of the on line business in Singapore so I can declare my profits there. I hire 4 people in Singapore and ZERO in NZ because Singapore has a far more favorable tax structure and no minimum wage. NZ has an unemployment rate of 6.7%. Singapore's rate is a third of that.

This has nothing to do with being left wing or right wing. It's all about taxation and accounting and the innate desire of any business owner to get the best bang for his buck.
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

i actually agree to what he says.

it is not just the rich who create jobs.. job creation is caused by a network of businesses set up by the rich or someone who is entrepreneurial, the sound financial and business policies by the govt and the high purchasing power of the consumers..

i agree that the purchasing power of the consumer needs to be high in order for more job creation but that is not the only part of of.. it is the whole network or sound ecosystem of the economy which causes job creation.


He mention of paying more to the middle class... i agree

i also want to point out that the poor need to have minimum wages and policies which help them to move towards middle class.

Taxes to be cut for the rich on the number of employees who are on minimum wages.

job creation is quite equal to wealth creation of the country.

eh this is too unlike you Tony. please don't change the image of your tonychatfuckssinkie.

the ideal of empowering consumers/citizens is anathema to our establishment. they kua sway the people.
 
country vs state is hardly a fair comparison. but even then 8.6% is still higher than the fed's target of 6.5%. cf Nick's talk and his data, if giving the rich more money means more job, then the US should theoretically be out of the dumps by now. but they're not.

detroit is dying due to structural shifts, not due to tax policies which is what we are arguing.

Cali has one of the highest state tax rates if i'm not mistaken.

Companies such as Apple, Google etc are lucky in that they can avoid paying high taxes because of their borderless structure.

They locate in the Bay area and create employment there. However, they remit very little of their worldwide profits back to CA.
 
Re: Banned TED Talk: Nick Hanauer "Rich people don't create jobs"

Rich don't create jobs.
Business create jobs.

It is consumers that create jobs.

Without consumption, there will be no business, no jobs, no rich people.

The rich create businesses from ideas and hard work.

Successful and expanding businesses create an affluent middle class.

The affluent middle class spread their wealth through conspicuous consumption... sometimes beyond their means.

The rest of society benefits at every level as long as they're willing to work.
 
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