Most of the wealthy don't spend tax cuts on creating jobs. They buy stuff like this.

[Archae]

http://www.cracked.com/photoplasty_2335_22-brilliant-gift-ideas-appallingly-rich/

[unblock]

1. here's how it works.

the wealthy don't hire in response to a tax cut because tax cuts do not incentivize hiring, period.

if a wealthy person can make a small profit from hiring someone, they will do it. taxes don't turn losses into profits, all they do is change the size of them. so a tax cut turns a small profit into a larger profit. the wealthy person loves the tax cut, but it doesn't change the hiring decision.

in fact, on the margin, tax cuts *discourage* hiring, because they increase the risk of hiring. tax cuts mean bigger profits if all goes well, but bigger losses if they don't, because the tax reduction from the losses is smaller.


what the rich *do* is spend on crap. yeah, like a gold-plated trump phone. this means indirect hiring, as people work to provide the rich with extra goods and services. if gold-plated trump phones can be called "goods"....

problem is, much of the money the rich spend goes overseas. in fact, iphones is a good example as the extra hiring would mostly be in china. or is it "gina"...?


when poor people get money from the government, one way or another, the vast majority of it is spend, and most of what they spend is spent locally. so the hiring happens in america.

if the goal is to stimulate the american economy, giving money to poor people is far, far more effective (easily two or three times as effective).

but of course, that's not the goal.

sad.

[Wounded Bear]

3. If only we could repeat this often enough...

for it to sink in to the heads of the average Trumplodyte. They hear the phrase "tax cuts" and think they will get one.

Maybe they will, on the order of $100/yr or some such piddling amount.

[Yavin4]

2. They give their tax cuts to hedge funds to speculate on risky assets.

The rest of the financial industry sees this and wants in on the speculation. They don't want to miss out. The speculation grows and grows and grows until there's a major crash (1987, 2000, and 2008).

[Wellstone ruled]

4. In our Society,

are created via Consumerism. Econ 101 teaches that as a basic premise. First of all,like most have mentioned,those so called Tax Cuts only effect the top 1%,and if Ryan's plan is used,for every dollar in cuts,one dollar comes from Social Welfare Programs as well as Tax increases on the bottom two Quintile,meaning the bottom 40% of the wage earners with single parent households being effected the most.

Seniors depending on Social Security payments as a necessity will see the hardest hit of any group. Irony is they are the single largest supporters of the GOP.

Jobs have never been created by the Monied Class,only the Federal Government has created make work jobs and that was under FDR and the new Congress is about to pass legislation preventing that from ever happening again. McConnell has promised to reverse ever FDR program within four years.