This is only a Preview!

You must Publish this diary to make this visible to the public,
or click 'Edit Diary' to make further changes first.

Posting a Diary Entry

Daily Kos welcomes blog articles from readers, known as diaries. The Intro section to a diary should be about three paragraphs long, and is required. The body section is optional, as is the poll, which can have 1 to 15 choices. Descriptive tags are also required to help others find your diary by subject; please don't use "cute" tags.

When you're ready, scroll down below the tags and click Save & Preview. You can edit your diary after it's published by clicking Edit Diary. Polls cannot be edited once they are published.

If this is your first time creating a Diary since the Ajax upgrade, before you enter any text below, please press Ctrl-F5 and then hold down the Shift Key and press your browser's Reload button to refresh its cache with the new script files.


  1. One diary daily maximum.
  2. Substantive diaries only. If you don't have at least three solid, original paragraphs, you should probably post a comment in an Open Thread.
  3. No repetitive diaries. Take a moment to ensure your topic hasn't been blogged (you can search for Stories and Diaries that already cover this topic), though fresh original analysis is always welcome.
  4. Use the "Body" textbox if your diary entry is longer than three paragraphs.
  5. Any images in your posts must be hosted by an approved image hosting service (one of: imageshack.us, photobucket.com, flickr.com, smugmug.com, allyoucanupload.com, picturetrail.com, mac.com, webshots.com, editgrid.com).
  6. Copying and pasting entire copyrighted works is prohibited. If you do quote something, keep it brief, always provide a link to the original source, and use the <blockquote> tags to clearly identify the quoted material. Violating this rule is grounds for immediate banning.
  7. Be civil. Do not "call out" other users by name in diary titles. Do not use profanity in diary titles. Don't write diaries whose main purpose is to deliberately inflame.
For the complete list of DailyKos diary guidelines, please click here.

Please begin with an informative title:

The popular notion of the so-called “Job Creator” is a myth. Yet the very idea of Job Creators represents the most basic argument in the Supply Side story, a concept which postulates that economic growth requires expanding the means of production. The term Job Creator has been repeated and spun so frequently on Capitol Hill and across America, almost exclusively from Conservatives, that it has become accepted wisdom that job growth is determined by the means of production, the supply-side of the economy. It is not.


You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

The reason is so stunningly simple and basic that it’s almost entirely invisible by politicians and pundits alike. This is because contrary to the supply-side mantra, most businesses are unwilling to expand hiring unless the new jobs are justified by sufficient Market Demand. It is for this reason that the popular supply-side policies of tax cuts and credits have done little to stimulate domestic hiring. If anything businesses have converted the government largesse of lower taxes into enhanced profitability, with little in the way of new jobs materializing.

So who precisely are the real job creators? Simple, just visit the mall, or any place where goods and services are purchased. The real source of market demand is consumption, and it is the increase in demand, not supply, and that persuades businesses to hire. Yet for the past thirty years conservatives have had an ideological love affair with supply side economics. It entirely fits of course. Modern day conservatives are clearly the party of the top 1%, and so a policy of rewarding wealthy interests is perfectly aligned with their support base. And as everybody else would prefer lower taxes, it plays well to many voters, or at least those people who are unable or unwilling to recognize the vast wealth that is being surreptitiously funneled to the super rich.

Except that it doesn’t work, at least for the bottom 99%. So it is not surprising that since supply side went main stream wealth has gone almost entirely to the top, and real wages have been stagnant. Yet conservative politicians remain adamant that low taxes will fix the economy AND low spending will fix the deficit, completely ignoring that the only genuine solutions to balancing our public finances requires more revenues as well. Even business interests are coming around to acknowledge that President H. W. Bush was right all along, it really is Voodoo Economics.

So if businesses are unwilling to expand hiring on US soil until domestic demand warrants it, a pointedly Demand-Side requirement, then why does this ineffective ideology continue to wreck so much havoc on Washington’s ability to implement economically sensible policies? I contend that only when we figure that out will we be able to avoid artificially created Fiscal Cliffs.    

Extended (Optional)

Originally posted to Realist-at-Large on Fri Jan 04, 2013 at 04:05 PM PST.

Also republished by Community Spotlight.

Your Email has been sent.