“When businesspeople take credit for creating jobs, it is like squirrels taking credit for creating evolution. In fact, it’s the other way around.”
Nick Hanauer is a founder of Second Avenue Partners, a venture capital company in Seattle specializing in early state startups and emerging technology. He has helped launch more than 20 companies, including aQuantive Inc. and Amazon.com, and is the co-author of two books, “The True Patriot” and “The Gardens of Democracy.” He also wrote the above quote for an op-ed in Bloomberg.
Explaining how he, as a very rich person, buys only a few more items (albeit more expensive ones like planes but this was manufactured in France) than the average family, Nick backs up his findings that the job creators are the consumers who create the demand for the product business people like himself create.
I’ve never been a “job creator.” I can start a business based on a great idea, and initially hire dozens or hundreds of people. But if no one can afford to buy what I have to sell, my business will soon fail and all those jobs will evaporate.
That’s why I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is the feedback loop between customers and businesses. And only consumers can set in motion a virtuous cycle that allows companies to survive and thrive and business owners to hire. An ordinary middle-class consumer is far more of a job creator than I ever have been or ever will be.
Sure, this is a duh moment but it flies in the face of everything the right and indeed, the middle and the soft left, have believed for some thirty odd years. Instead of questioning these Reaganesque ideas, Americans swallowed them without any evidence that they worked. We were told to disagree was to hate capitalism and to hate capitalism was to hate America. Next up in the system of lies: how the communist socialists liberals ruined America.
Of course, we have no proof of any such thing since we have never had anything like socialism here. We might want to give it a try, though, since we’ve tried the opposite extreme and it doesn’t work.
What they don’t want you to know is that you are the power behind capitalism. You and your middle class job, your small business that allows you to make purchases that drive the economy, your union wages that give you retirement security and health insurance so that you have extra cash to buy things you don’t need for your family.
YOU are the job creators.
As such, you are entitled to special treatment; you should be honored for simply existing. For having the strength to go to work every day, you should be given gifts from the Federal Reserve to the tune of trillions of dollars. After all, without YOU there would be no economy. You are, indeed, too big to fail.
When the 1%’s puppets criticize the American people, when they say we are lazy, hippies, radicals, socialists all because we want some measure of economic justice, what they’re really trying to do is put you on the defensive lest you look behind you.
Because behind you is the truth. Your years of hard labor, your years raising children, your years spent in school to make something of yourself, your efforts to be a good citizen, these are the things that drive this great capitalistic economy – an economy that is supposed to be driven by meritocracy rather than favoritism. Your hard work has lifted the 1% until their income has increased by 400 percent while yours has declined by 33 percent.
And they call you a radical for being angry?
In fact, you are the logical one. You are the Good Samaritan and citizen who never asked for more than your fair share and were willing to work hard for it. They told you the nation was suffering and so you swallowed the hit to your 401K during the Bush crash with stoicism. You only wanted what was best for your country.
Sure, you were scared, but you believed that we were all in this boat together.
Now that you know better, now that you see how your hard work was labeled laziness and Republicans are telling us that they can’t pass payroll tax cuts for middle class Americans if the top 1% of God-like “job creators” have to pay for it, you’re beginning to wonder why you aren’t getting any special treatment.
After all, if being a job creator is so darn great, why aren’t the Republicans kneeling down to help you? Why do they only care about tax cuts for the top 1%, even though their trickle down lies have been exposed as nothing but a shell game?
For years I’ve been saying that true conservatives know the current ideology of the Republican Party is anything but free market capitalism. It is not truly conservatism. And now we see the honest ones surfacing. They don’t want their ideology tainted with the stain of this experiment gone wrong any more than we all want to suffer from its implementation any more.
It’s not real conservatives who are to blame for this debacle; it’s the Fox propaganda puppets for the corporate psychopaths and the Republicans who left their true values behind. It’s dishonest conservative writers and pundits who somehow managed to keep a straight face while selling corporate tax cuts per state as a free market idea (see Wisconsin under Walker post corporate tax cuts – huge loss of private sector jobs – ironies abound).
It’s people like Newt Gingrich who is known as their idea man, but he’s also the same person who wrote a book so dishonest and full of paranoid, unproven accusations about the “tax and spend commie socialist agenda” of the Democrats that his readers no doubt failed to ask themselves why the debt was driven up under the Republicans and who was supposed to pay for those wars and why were tax cuts given that were unpaid for?
There isn’t an honest Republican on the national stage right now, and even Jon Huntsman, whom I respect, sells tax cuts and pro business talk as the answer to our financial crisis. Heck, given his lack of ugly stupidity, he might as well run as a Blue Dog Democrat.
The answer to our financial crisis lay with fixing the middle class.
The answer to our financial crisis is a booming middle class with disposable income.
The answer to our financial crisis is to support the real job creators.
In other words, the answer to our financial crisis is to give the 99% what they worked for, earned, and need in order to drive this economy with demand.
Anyone who tells you they believe in the free market system but don’t understand the necessity of demand is being dishonest with you. If you are protesting Wall Street, it’s not because you hate capitalism; it’s because you want this country to succeed and it can’t succeed when the economic system is based on tenuous lies meant to enrich the top 1%.
Real patriots don’t hate the 99%; without the 99%, this economy is dead.
So, to all of the Fox News puppets and the Wall Street Journal (Murdoch again) liars, I say, man up. Have the guts to stand by the ideology you tout. Do us all a favor and look in the mirror. Explain to us how this is socialism and how demand is not necessary for a healthy economy. Sure, you tricked many of us into spending what we didn’t have and thereby propping up your lie about tax cuts with easy mortgages and lines of credit, but that crutch is gone now.
All that’s left is the wreckage of the truth; these “conservatives” built their faux economy on governmental favoritism, lies, faulty mortgage products meant to enrich themselves and create a false demand, shell games called derivatives, and so many more cons via deregulation of the financial industry.
They told us that deregulation would make us thrive, that the free market would sort out the winners and losers and force companies to be accountable but clearly that isn’t true, as they also worked to get secret bail outs for the companies that should have failed.
Instead we have corporations run by psychopaths with greed as the only American value. Nothing will stop that machine, and without the government to protect the people from the machine, we have abuses against labor and poisoning of the people, because you see, the unfettered free market as implemented by the Republican Party is an unmitigated failure of global proportions.
They wrecked the real job creators and decimated their power, destroying our economy in the process. They don’t have an answer as to how capitalism works without demand. They want us to keep buying things but they don’t think we’re entitled to a $40,000 a year teacher’s salary. In fact, they want public sector workers to pay for the payroll tax cuts. How exactly would that stimulate the economy?
What exactly has the 1% done for us (and by us, I mean our country) lately?
What say you now, 1%?