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Watch the news, read the newspaper, listen to the radio and there they are.  The convenient lies tossed out so often, by so many, that we hardly notice them any more.  Businesses are job creators. Most new jobs are created by small businesses.  Reducing taxes on businesses will create more new jobs. These lies have have been told so often that they are seldom recognized for what they are. Liberal polititians and supposedly impartial news readers alike repeat them without a thought about what they're saying.

Begging businesses to create jobs, or throwing tax breaks at them is a fools errand and a colossal waste of time. Lets be clear - one thing, and only one thing, will create a job, and that thing is a steady supply of paying consumers.  Reduced to its most basic level, job creation goes something like this...

An elderly lady has a problem with arthritis and can't mow her own lawn anymore.  She calls the teenager next door and offers to pay him to cut it for her.  The teenager accepts, cuts the grass and gets paid.  Presto, one job created. Yeah, it's pretty short-term, and it doesn't pay much, but it's a start.

Take the above scenario and scale it up a little. Not long ago, an electrical contractor I know was complaining about business being slow.  Then he started talking about how high his business taxes were and that they were killing his business. When I asked him how many people he would hire if his business taxes were reduced to zero, he responded "Business taxes are just too high."

That statement rings hollow, and totally ignores the question I posed. I know that in years past his business was far busier and he had more employees. It's obvoius that the health of his business is far more dependent on the number of customers he has than on his tax rate.

Scale up the lawn mowing scenario some more. Lots more. Oil companies and large banks are making record profits and are sitting on huge cash reserves. Many of these companies end up paying no income tax. If cutting taxes on corporations and wealthy individuals created jobs, the unemployment rate would be zero, and wages would be skyrocketing.

All business is a larger version of that basic lawn mowing transaction. Can anyone look at the deal between the elderly lady and the teenager and say with a straight face that the teenager created that job? Okay, Republicans can do it, but they'll do anything, short of telling the truth. In any economy, consumers paying for goods and services are the job creators. Jobs are created at businesses, but not by businesses

A large portion of the wealth formerly under the control of the lower and middle classes has been redistributed upward since Saint Ronald of Reagan first foisted the idea of 'trickle-down economics' on an unsuspecting country. Precious little has ever trickled down. Any increase in demand for goods and services will have to be funded by businesses and the wealthy, either through increased taxes or through dramaticaly increased wage rates. They have to be the ones to pay for it, they have all the money.

Once some wealth has been re-redistributed, downward this time, some overdue bills can be paid, people can stop worrying about how they will pay for their next meal or medical co-pay. Sooner or later people will start to feel more secure. Then they will start to spend more. Then the businesses will hire more people to meet higher demand. The cycle repeats and soon everybody is happy. Or at least a little less pissed off.

I realize that a dramtic increase in wages in this country is pure fantasy. That leaves tax policy and government spending to solve the unemployment problem. Everybody in this country, and every business, is a consumer of goods and services provided by our various govenments. For years, the wealthy and big businesses have been getting theirs at a discount while the 'lower' classes have been picking up the slack. It's time to make those with all of the money start to pay retail again.

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Comment Preferences

  •  I can't believe repubs are getting away with that (1+ / 0-)
    Recommended by:
    Killer of Sacred Cows

    "job creator" crap.

    An honest media would have blown them away long ago.

    Some people fight fire with fire. Professionals use water.

    by Happy Days on Sat Oct 08, 2011 at 01:54:24 PM PDT

  •  I am a job creator (1+ / 0-)
    Recommended by:
    Killer of Sacred Cows

    You are very right, I have been calling and emailing my legislators for the last two months, telling them exactly that. Those undertaxed millionaires aren't the job creators, the middle class workers are.  Two years ago, my daughter, son-in-law and two young grandsons moved in with me.  We have replaced the old fence, doors, and driveway on the property.  And updated the electricity.  We have used all local businesses for the work.  And I forgot to mention our mechanic (we call him Saint Frank) who keeps one of the old cars going.  I would bet that 200 families making $50,000 a year, create a lot more jobs than one making  $1,000,000.  Think about it.  Groceries, newspaper subscriptions, internet connections,two hundred middle class families replacing an old refridgerator vs. one family who makes a million a year. Doesn't seem like rocket science.

  •  I've Posted This Twice On Kos (0+ / 0-)

    And have read it at a couple of Rallies.  Since the first time I posted it I've made changes.  I will be reading this again on Friday, Oct 14th at Congresman Michael Grimm's Brooklyn Office (7308 13th Avenue Bay Ridge Brooklyn) at a Move On Restore The American Dream Rally we're having there between 4PM and 6PM.

    At least I was until I lost my job in Oct 2009 and you're probably a job creator also.  You see, when I had a job I was able to shop, buy clothes, go to the movies, go out to eat weekly (if not more).  I would buy whatever I either wanted or needed and still have money left over.  I went on vacations and enjoyed myself.  Now, I only bought 1 tee shirt at $7.99 and 1 pair of cut off pants at $9.99 (both purchased in KMart) so forget about Macy's and Boutique stores and my shoes are at least 2 years old.  I only go out to eat once a month where I may only order just an appetizer or an inexpensive item on the menu, haven't been to a movie in 2 years and the only vacation I took in 2 years was a trip that had been paid for prior to my losing my job.  My grocery shopping consists of a lot of pasta when it's on sale 10 for $10.00 and, as I always have done, I make my own sauce or mix it with vegetables.  I didn't create big jobs but I was able to keep small merchants in business (especially at the Italian Supermarkets in my neighborhood). Now I shop very little at these stores and mostly at 2 chains besides Costco and I only buy what's on sale and ignore all the items I'd like to buy because I know they're a "treat."
    I created jobs with my purchasing power but now I don't have that purchasing power and I'm sick and tired of hearing John Boehner, Michael Grimm, Mitch McConnell, Eric Cantor and all the other Republicans talking about "JOB CREATORS."  Mr Boehner, I am that job creator but the Republican Party has taken away my ability to do this as your members sit there and refuse to create jobs.  Your only interest is protecting the wealthy and you really don't give a crap about the millions like me who are out of work and waiting to hear of all those jobs you promised before the 2010 elections.  Instead, from January 4, 2011 when your party took control of the House you only cared about defunding Big Bird, Planned Parenthood, FDA, EPA, FAA (74,000 workers lost their jobs when your party refused to renew their contract), etc and voting down anything Obama wanted.  In fact, there have been many times when your party has proposed something, Obama said that sounds good and then your suddenly decided that because Obama liked it you would now take it off the table. You have tried to defund Healthcare and break unions and if we still didn't have a majority in the Senate, you would have gotten away with this. Where were the Republicans on the deficit?  Oh, I forgot the Ryan Budget and Cut, Cap and Balance which were both sellouts to your "base" and would hurt the average working class citizen, not to mention those seniors collecting Social Security and on Medicare and those on Medicaid. Your party bows at the feet of Grover Norquist and doesn't have the guts to tell him to take his pledge and shove it because, by doing that, you’re disrespecting your wealthy base.  Does your wealthy base vote?  Well, yes and no.  The corporate heads do but they don't control my vote and they don't control the votes of millions of others like me and let me tell you we'll be out in full force November 2012.  You think we're going to forget well we're not and we'll let you know this time and again until the November 2012 elections.  

    Never be afraid to voice your opinion and fight for it . Corporations aren't people, they're Republicans (Rev Al Sharpton 10/7/2011)

    by Rosalie907 on Sat Oct 08, 2011 at 08:24:35 PM PDT

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