"Job Creators" don't create jobs, says "Job Creator"...

Found this on facebook today, and since I've posted other rants about how ronny raygun killed the economy and how big corps are ripping you off, I thought this was fitting to post.

(general mod disclaimer: if in the wrong place, please move and accept my apologies)


"Nick Hanauer talks for six minutes on why the rich aren’t the job creators — and as someone worth $1 billion USD, he knows a bit about the rich." from the article: www.addictinginfo.org...

the vid embed code:

reply to post by stormson


brilliant talk...

Somehow I knew this without knowing


It's an endless paradox...In EU, they are telling us that it's a recession...and the only way out of it...is that people stop saving money during recession...in fact...to beat it...we need to spend more...even money we don't have. That is their way out.

The major fallacy of the capitalist system is...it needs to constantly grow, expand the market or it crashes.

It can not go on forever like that. Imagine what would happen to a human being that constantly continues to grow...eventually...it's growing body could not support it's weight and it will die.

reply to post by stormson


I find it ironic how TED's slogan is "ideas worth spreading" when they shut down the real ideas worth spreading because it doesn't fit their view, Graham Hancock was once banned as well.

The elites aren't creating jobs because they are focused on generating wealth and nothing else, all they do with their money is buy other companies out, when they could use their many billions of dollars to create new industries.

Look at alternative energies like tidal power and the others, they could create construction jobs, maintenance jobs, IT jobs, ETC, and they would'nt lose money because they could charge people for this power and help the environment at the same time.

But instead they devote their time and effort into finding tax havens and enjoying the finest in life, then the money that they leave after they've passed will go to the next generation and the cycle will continue.

Most of the true entrepreneurs are either dead of retired.

reply to post by MarioOnTheFly

The major fallacy of the capitalist system is...it needs to constantly grow, expand the market or it crashes.

Yes, exactly. I've always said this. We have limited resources, and to constantly rely on a certain percentage of growth for a healthy economy is unsustainable. It's like a pyramid scheme, the people at the top keep raking in all the profits while the dirt poor at the base keep expanding. There's no good outcome. At some point there won't be enough to take care of the minions any more.

reply to post by stormson


Thanks for posting this. And yes, it is a certain emanation of conceit and self deification. Very much so. I wouldn't say that the government job creator types are any different really.

MarioOnTheFly
reply to post by stormson

 

The major fallacy of the capitalist system is...it needs to constantly grow, expand the market or it crashes.

It can not go on forever like that. Imagine what would happen to a human being that constantly continues to grow...eventually...it's growing body could not support it's weight and it will die.

Yes as if the competing capitalists are working together in some sort of harmony to expand the "market". Well they are not really working together and the goal is to shrink a vaster market experience for the consumer by driving out competitors and lower cost producers by various artifices.

And really, in most cases wages are not reflected in a companies success.

reply to post by stormson


Great video and full of truth. Thanks for posting. F&S for the OP!

Hope this helps, here's the video;

I'm not going to waste my time playing into the left/right paradigm, or the trickle down/up paradigm, or the rich/poor paradigm... but I am going to share MY experiences because I AM A JOB CREATOR!

I am a middle-class, mid 40s male who makes just barely more than 6 figures a year - hardly rich by any definition. About 2 years ago I left corporate America behind to start my own business in order to escape what I perceived as "indentured servitude" to the corporate masters. I wanted something different for myself and my family and I wanted to create something different for the employees I imagined I would someday hire.

The road has been difficult, to say the least, with the government putting just about every imaginable roadblock in my path to success. Between registration fees, taxes, insurance and the countless regulations that I have to constantly monitor and adhere to there is scarcely time to actually engage in business-building. It is almost as though the government is putting the onus on me in order to protect the prevailing monopolies. That said, I have actually been successful in developing a strong client base - so much so that it has been necessary for me to hire people to help me run the business and continue its growth.

The reality is simple, if I had more money, more access to financial resources and less regulatory obligation, I would have twice as many employees, would be generating 3 times the revenue and paying 2 to 3 times more taxes. However, I would also fit into that nasty category of "rich" business owner - one that the government is working hard to eliminate.

So instead of playing into the existing paradigms I can tell you from direct experience that BOTH PARTIES ARE DEAD WRONG! Wealth trickles both up AND down. BOTH rich and those of modest means CREATE JOBS. And Government is the single biggest impediment to a fully functional, fully employed economy. If government would get out of the damned way, end corporate welfare, enforce anti-trust laws against monopolies and stop bailing out failing businesses we could get back to enjoying prosperity. A good look at the facts followed by careful, thoughtful analysis reveals that the government has no desire for its people to be prosperous - as a prosperous people can rely on themselves instead of trading their freedom for handouts!

reply to post by Thecakeisalie


Yeah, there's still some great stuff on TED Talks but it's sad what it's become. I was reading an article about it and the author stated his opinion that TED has become like American Idol and I couldn't disagree. Anyway that was a good talk none the less.

reply to post by kozmo


You really should take the time to watch the video.

What the guy is saying is absolutely true. All he is saying is that wealth and/or "the wealthy" are not job creators, but rather, it's the demand for a product that creates the jobs necessary to produce and distribute it.

Without the demand for the product, neither yourself or anyone else would invest their time and/or money to produce it. So in essence, it's the middle class person who has money to buy the products which creates the demand that it turn, is the impetus for job creation.

What a business owner is actually doing is taking advantage of the current demand for a given product and utilizing that demand to generate a profit by becoming a part of the necessary supply chain.

Yes they may risk some personal wealth and time when going into business for themselves but in all honesty, their motivation for doing so was not to create more jobs, it was to generate more personal wealth and to do so while being their own boss.

It's "people" and the products they want and/or need that creates the demand and it's that demand that in turn creates the businesses needed to supply it. (Kinda ass backwards from what our so called "wealthy job creators" would have us believe.)

The video oozes with truth from beginning to end.

reply to post by kozmo

The reality is simple, if I had more money, more access to financial resources and less regulatory obligation, I would have twice as many employees, would be generating 3 times the revenue and paying 2 to 3 times more taxes. However, I would also fit into that nasty category of "rich" business owner - one that the government is working hard to eliminate

Why do you need more ? And to what purpose are you hiring ? Hiring to feed and employ and thus help people?...or are you hiring because the growing demands gives opportunity for higher profits...which in turn requires more workforce to satisfy demand ?

Tell me ? when is enough ? When would you stop expanding if the demand is there and you have funds to invest ? And when would you stop being a family busyness owner and start being a corporate owner ?

I applaud your busyness efforts and beg you to stay small...I think this video was not about you anyway. It was about billion dollar companies...I think.

reply to post by Flatfish

It's "people" and the products they want and/or need that creates the demand and it's that demand that in turn creates the businesses needed to supply it. (Kinda ass backwards from what our so called "wealthy job creators" would have us believe.)

true. But there is also additional problem with the "demand". It's completely fictional and in many cases artificially induced to promote...profit. Back to magic circle.

MarioOnTheFly

Why do you need more ? And to what purpose are you hiring ? Hiring to feed and employ and thus help people?...or are you hiring because the growing demands gives opportunity for higher profits...which in turn requires more workforce to satisfy demand ?

Tell me ? when is enough ? When would you stop expanding if the demand is there and you have funds to invest ? And when would you stop being a family busyness owner and start being a corporate owner ?

I applaud your busyness efforts and beg you to stay small...I think this video was not about you anyway. It was about billion dollar companies...I think.

I am hiring because there is outsized demand for the service I provide. I need more money in order to pay new employees, provide their benefits, and pay for all of the overhead associated with employing someone.

You bring up interesting points beyond that... I don't see a need to stop expanding if there is a want/need and I don't consider "Size" to be qualifying criteria for either a "Corporation" or a "Family business". In my opinion, that is determined by corporate structure; public versus private.

I also agree with respect to "Audience"... However, let us not confuse billion dollar businesses with billion dollar net-worth individuals. My contention is that as an "Individual" owner of an LLC with revenues in excess of $1M I am considered by many to be wealthy. They fail to recognize that my "income" is a mere fraction of that.

Well, it's essentially true. I had a thread a while back that went on for MANY pages. I tried to explain to people that without customers, there would be no demand for products/services.

If there is no demand for a product or a service, a company will not be successful or grow.

If a company is not successful, it won't hire more people.

If we want to create more jobs, we need people with money to buy products. It really is that simple.

Here's an analogy I used:

Imagine a house, with the middle class and poor people being represented by the concrete foundation. It is on the backs of the middle class and the lower class that the rest of house is built upon.

Now, imagine if you start chipping away at that foundation, while simultaneously adding more floors for the wealthy up top. The home is getting more and more top heavy, meanwhile the foundation is being taken out from underneath it.

Eventually the house won't have a foundation to support it, and the whole thing will collapse in on itself from it's own weight.

This is essentially what is going on right now in America. The wealth of this country is being consolidated and moved out of the country. The top 1% aren't re-investing their money to shore up their "foundation" (the middle and lower classes).

I always thought pretty much everyone knew this, but those that had the power to change it, were bought off by the wealthy. "the wealthy are the job creators" has in mind anyway, been such a throwaway line ever since I first heard it, I just assumed that people took it as such, because they couldn't fight against it.

Thecakeisalie
reply to post by stormson

 

The elites aren't creating jobs because they are focused on generating wealth and nothing else, all they do with their money is buy other companies out, when they could use their many billions of dollars to create new industries.

Look at alternative energies like tidal power and the others, they could create construction jobs, maintenance jobs, IT jobs, ETC, and they would'nt lose money because they could charge people for this power and help the environment at the same time.

But instead they devote their time and effort into finding tax havens and enjoying the finest in life, then the money that they leave after they've passed will go to the next generation and the cycle will continue.

Most of the true entrepreneurs are either dead of retired.

"Buying other companies out" is possibly one of the safest things to do at the moment. Setting up in a new industry brings with it tremendous amounts of government-created hurdles, headaches and costs. Unless you've got an absolutely rock-solid proposition that needs a completely fresh vehicle, the most sensible thing to do is to buy out an existing company that has already fought its way through the process.

These people want to make - and keep - their money. Knowing when and where to invest it for the most stable return is how they made their fortune. Choosing not to blow their fortune on expensive likely-to-fail ventures is how they keep it.

The true entrepreneurs are not dead or retired, they're just still looking for the best opportunity. If the clients are there with money to spend but the investment is still not being made, that's because there is too much expense and effort standing between the company and client for limited return - in most cases, that's due to government involvement.

reply to post by kozmo


Never make a nickel off another Man's sweat.. from a movie I saw as a kid.

The problem is that people want to be the boss of others instead of partner so they can MAKE MONEY off of other people.

You are as big a problem as any elite..

reply to post by kozmo

I don't consider "Size" to be qualifying criteria for either a "Corporation" or a "Family business". In my opinion, that is determined by corporate structure; public versus private.

I stand corrected...I was referring to size though.

Anyway...explain me if you will...this mentality I am unable to grasp. For these reasons obviously I probably will never be rich...but...why do you want it bigger ? khm...the busyness I mean...

What's the appeal of an ever so larger, more cumbersome, heavier system if not solely to acquire more profit? The bigger it is the harder it is to keep it afloat. Bills run high, more workforce also means less work hours per worker. Quality often suffers as it falls second the speedy production due to larger demands...etc...etc...

I don't know about anyone else, but if I had 100's of millions of dollars -- I'd have a lot of fun and start some awesome companies and employ people. I wouldn't care about loosing it or "risk". You only live once, and you can't take your money with you into the afterlife.

Or, if I had Bill Gate's money I'd already be living on the Moon. Why not? Throw enough money at a project and it'll happen. Think of the people I'd employ getting my own moon base operational? Think of all the industries that would benefit from the construction and engineering it would take?

It's only money -- It's not like it's some kind of elixir of the immortals that will keep you alive forever. Money was meant to be earned and spent, not horded away off shore in some foreign tax shelter.

The job creator meme was all propaganda anyways. People dont start a business to create jobs but to make a profit and if they can do it with 0 people or cheaper labor from China, they will.

A cake maker's sole task is to make cakes.
A business owners sole task is to maximize profits for himself and his shareholders.
Any jobs created are an undseired expense.

There also have been many tag team ceo that go from business to business destroying jobs along the way to pad they and their cronies stocks. If the companies loose more and more people aee they job destroyers