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I don’t want to hear the job creator bull-shizzle anymore. The Republican House is still exhibiting their old habits of protecting the wealthy or so called “Job Creators” Let’s look a bit deeper into that myth by pulling back the rug on what creates jobs. (It’s sure not the Republicans)

Most people earning $300K-2M work as presidents/vice-presidents/managing directors of divisions, or profit centers. Does anyone believe that if a president pays less in taxes, he/she would create more jobs at work? NO! There is no connection between his/her tax bill and the divisions’ employment rate. It’s not his/her money going to pay employees, it’s the corporation’s money.

The corporate employment rate is driven solely by DEMAND and demand only. The more products customers want, the more they have to make. If a company starts using more overtime to make product, they hire more people to keep costs down. If their customers order less, demand drops and people get laid off. Seems like a pretty simple concept right?

The other way demand can generate more jobs is by purchasing new machinery to make more products. The same rules above apply. More customer orders, more machinery. If orders slow, new machinery gets put on hold. This not only creates jobs at the first company but also at the company manufacturing the new machinery. This is a Business-to-Business market. But you can see its all driven by the original consumer demand.

Let’s take a billionaire (big job creator), and say he/she gets and extra $50Mil in salary through tax cuts. What is he/she going to do with that money? Maybe buy a boat, take an extra vacation, or by a new necklace for his wife/husband/mistress/man-toy. I say his/her lifestyle will remain relatively the same, and their consumption level will not change.

Now let’s take that same $50Mil and give it as $1000 tax cut to 50,000 low to mid-wage working folks. What are they going to do with it? Spend it, but on what? Well toasters, pots, pans, new refrigerator, new stove, food, medicine, snow shovel, kid’s clothes, tires, and anything else they NEED. The spending creates demand and converts into orders for more products. This signals the manufacturer that they need to hire more workers and invest in more machines to meet the new demand.

An extra bonus here is that the newly hired employees now have a steady paycheck, they start spending on things that have worn out or broke during their unemployment. Most likely the same type of stuff I mentioned above. This cycle creates an upward spiral in our economy and puts us on the road to recovery.

Raise the taxes on the high earners, they won’t even notice it. Let’s pass another infrastructure stimulus to give the economy a shot in the ass and get us moving again. This is why the administration wants to include unemployment benefits in the deal. This is also why the payroll tax should be extended. That money goes right into the hands of people who will spend it on things they NEED.

Put into simple serf terms: my spending helps your company, and your spending helps mine.

A rising tide lifts all boats.

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