The rich are not job creators by virtue of being rich [View All]

[Galraedia]

"The Republican talking point comes through loud and clear: DO NOT call them "The rich." Call them "job creators."

This talking point is designed to get away from "rich vs. the rest of us" (because the GOP's wordsmiths know they will lose that battle) and focus on job creation. The talking point is also false.

The rich, whether they be business owners or investors, should not hire new workers simply because they have more money available to them. Why should they? It's a waste of money unless there's more money to be made by hiring those new workers. Demand for goods and services drives new job creation -- if there is money to be made, then of course a business should hire. Of course an investor should invest.

The GOP would love for us to believe that lower taxes on the rich lead to more job creation. This is false, and empirically so -- with the lowest effective tax rates in the last century, what have the rich and the big corporations done over the past ten years? Saved their money. Squirrelled it away, waiting for a time when demand dictates that they invest it hiring efforts in order to make more money.

So the next time you hear John Boehner on NPR or another traditional-media outlet whining about President Obama's desire to increase taxes on "job creators," call the outlet and demand that they ask Boehner the question: "Exactly how do top earners create jobs?" And follow up until Boehner admits he's trying to hoodwink America."

Source: http://www.mnprogressiveproject.com/diary/9597/the-rich-are-not-job-creators