Don’t raise taxes on the job creators! That was the Republican excuse for fighting to extend the Bush tax cuts. Well, who are the job creators? Is it Wal-Mart, GE, Maytag, Ford, McDonalds?
The Fords of the world are the employers, but they will not hire one person without consumers spending their money on their products. The real job creators are the consumers who are paid a living wage and have discretionary income. The best way to increase consumer spending and confidence is to increase wages. If you pay attention to business programs, you will notice a lot of chatter about consumer confidence and the stock market actually fluctuates based on that premise.
Wages are the foundation of our economy and it is wages that are the real job creators. As I stated earlier, businesses will not hire significantly more people if they see little to no demand on the horizon. This train of thought is not new, in fact the idea that capital (corporations) are the job creators is the new idea. President Abraham Lincoln actually said,
“Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.”
Wealth and value is added to something through labor. People receive capital after labor has been exerted. Capital can not exist without labor, labor has always existed with or without capital.
Labor and wages are one in the same. Unfortunately, for the last 30 years, the only thing we have heard from the Republican Party is tax cuts, nothing about increasing standard of living wages. Now I know I’m beating the same drum, but it needs to be said, over and over again.
If we want to start creating jobs, there needs to be demand. But when the consumer is not providing the demand needed to force the businesses to hire, that is when the federal government steps in to fill the void, even if it is with the credit card. If not, businesses will not hire anyone, no matter how low taxes are. Eventually, the money comes back through taxes of the newly employed.
That is why we need to be promoting the Progressive Budget. The aptly named people’s budget not only reduces the deficit, but creates a surplus in 10 years. Within this budget is also “demand side spending”.
“Rebuilding our highways and waterways will create jobs in the short term and is at the heart of our international competitiveness in the long term. Our budget dramatically increases transportation outlays through a surface transportation reauthorization bill as outlined in the president’s 2012 budget request”
• Invest $1.45 trillion in job creation, education, clean energy and broadband infrastructure,
housing, and R&D
• Infrastructure bank
• Surface transportation reauthorization bill ($213 billion)
Imagine infusing 1.45 trillion in actual demand into our economy, rather than $300 billion dollars in tax cuts,which was a GOP idea, which didn’t really amount to much in the 2009 Stimulus bill. Remember, we have a 14 trillion dollar engine (economy) to start and we only used $700 billion dollars of demand to get it going after it stalled, no wonder we have inched ahead rather than plowed ahead.
The bottom line is corporations are not the job creators. It is the wages of middle class Americans that are the job creators and without wages businesses die. Remember, the wealthy didn’t get wealthy by opening a business, they got wealthy by attracting consumers and increasing cash flow.