Forum Post: 'Rich don't create jobs'
Posted 12 years ago on May 18, 2012, 1:17 p.m. EST by mha
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This absolutely true. It is demand which creates jobs. Europe has tried austerity measures and look at how it worked for them. Hoover tried the same thing and made America tumble into the Great Depression.
Do we always have to repeat the past, over, and over, without end, or can we learn from our past?
Here's a thread I started way back when. We finally began to understand that the republican plan is to return us to the days of the robber barons when the rich were filthy rich and everyone else struggled to just survive. This is history and can be checked, check it out.
The thread: http://occupywallst.org/forum/if-the-rich-are-jobs-creators-where-are-the-jobs/
Puzzlin'
yes, that is interesting that someone over at TEDs thought to censor this,. ?
Here it is again; http://youtu.be/bBx2Y5HhplI
It is a wicked argument; that if unfettered 'job creators' or wealth, really did 'create jobs', we would be drowning in them,. . 0.01% has sooooooo much. seems unfair and unjustified,. and has proven unbalanced and dangerous.
Tax cuts don't create jobs. Demand creates jobs.
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Demand isn't sufficient. Money accumulation provides the opportunity to actually have the product or service, and with it the jobs it provides. If there's demand for a product and you want it met, someone has to build a factory to produce it, and to subsidize its operation until it can begin producing a profit. That requires some pool of capital. If it's a big factory, it's a big pool of money. Thus, you need one or more of: someone with deep pockets, a pool of investors, sale of stock to raise capital, or some sort of communal pooling of money by the people who are starting the enterprise.
Without one or more of these, you go nowhere--factories and restaurants and shops and other businesses don't build themselves. That's why corporations sell stock, and that's why entrepreneurs week out venture capitalists. No money, no factory, regardless of demand.
As an example, some years ago I worked with a new company in the pharma field that wound up producing a major new drug to treat some things that couldn't be treated before. But to do that, they had to build a massive research and production facility, and fund years of research, all the while employing thousands of highly-skilled, highly-paid people, with an income stream of exactly zero. That required some venture capitalists who were willing to invest north of 10 billion dollars and wait more than a decade -- and risk the loss of it all if the research turned out to be a bust -- before they saw a dime of revenue. Without some people willing and able to risk big money and wait a long time to get it back, it never would have happened.
Venture capitalists rarely make risky investments. They analyze the business plan, the proposed management, the proposed products and the likelihood of success before putting up even one thin dime.
Of course there's risk; look at all the established banks that went belly-up and had to be rescued by the workers. Look at the American auto makers who came crawling to the workers after screwing for decades.
Of course they analyze proposals very carefully - they'd be foolish not to. I disagree,however, on venture capitalists not making risky investments. They do so all the time, and lose money on a high percentage of them. That's why they demand such a high rate of return on the ones that make it -- the winners have to pay for all the losers as well.
But all that is beside the point. If you want to start a business, particularly one that requires a significant investment in buildings,equipment, material and people to get up and running, you need a large pile of cash from somewhere. That somewhere could be an investor, or it could be workers pooling their money and forming a cooperative, or it could be something else, but it's got to be there. Starting up any business is a very costly proposition.
When we talk about people waking up to what's happening, this is where many are asleep. Telling the people that we shouldn't tax the job creators, (i.e. the wealthy), is wrong and people are smart enough to understand it, but they need to hear this speech.
As a small businessman, I can confirm his statement that hiring an employee is a course of last resort. We do everything possible to keep labor costs down! People that have spent their life working for someone else don't grasp this truth. Please watch this link and share.
No poor person has ever given me a job.
No rich person will ever give you a job either unless he must for his own sake.
How else does it work? Should some random rich person give me free shit just because I exist? Oh wait, that what you want isn't it? :)
Please click on the link provided in the original post and listen to the man explain how jobs are created. It's very interesting.
Why should the rich create jobs if the poor will still refuse to work at these places?
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