No Mr. Romney, Rich People Do Not Create Jobs

Ok. Stop.

People in this coutry, on both sides of the political spectrum, have got to get the stupid idea that it is the impetus of business to create jobs.

Its not. Jobs are a by-product of successful business. The more successful a business is the more it can do and in turn the more people it will need to do those things. Rich people dont have to expand their businesses. Many companies sit on money because they dont know what the risk environment is going to be in the near term future. Companies need a relative amount of certainty in order to effectively manage risk. Right now business doesnt have that certainty. They dont know what the regulatory environment is going to be like. So the smart thing to do is to sit on cash reserves, not blow that cash on creating jobs that may not be sustainable.

Originally posted by projectvxn
Ok. Stop.

People in this coutry, on both sides of the political spectrum, have got to get the stupid idea that it is the impetus of business to create jobs.

Its not. Jobs are a by-product of successful business. The more successful a business is the more it can do and in turn the more people it will need to do those things. Rich people dont have to expand their businesses. Many companies sit on money because they dont know what the risk environment is going to be in the near term future. Companies need a relative amount of certainty in order to effectively manage risk. Right now business doesnt have that certainty. They dont know what the regulatory environment is going to be like. So the smart thing to do is to sit on cash reserves, not blow that cash on creating jobs that may not be sustainable.

edit on 28-10-2012 by projectvxn because: (no reason given)

THIS.

Yep, in a nutshell.

Originally posted by Red Cloak
They call it trickle down economics because it means that the rich are pissing on everyone else.

BS.

There's no such thing as finite wealth. The whole concept that one can only get rich by stealing the wealth of others could ONLY work if wealth were a finite thing. It isn't.

How do I know?

Las Vegas in 1920


Las Vegas in 2012


That kind of transformation CANNOT happen in a finite wealth environment. That explosion in growth is an explosion in wealth in real terms.

reply to post by projectvxn


Finite wealth?

They can just print more money...

The only reason Las Vegas grew like that is because people had jobs and money to spend. No money/jobs = no casinos.

I'm not really trying to argue so much as point out that "wealth" is an can be created out of thin air. Our money is no longer solidly backed by anything of real intrisnic value. It's a "faith based" currency.

I see your point, and I agree that unless there is demand for a business to grow, it won't. Companies are in business to make money, not jobs. If they can make more money using robots instead of people -- they'll switch.

So, in some respects I agree and also disagree with you.

reply to post by projectvxn


The thing is, if you have money backed by gold, you have a finite wealth environment.

The "fiat" dollar is, in essence, backed by labor. Each person is worth something like $25k/year in production value. The boom in Vegas is an artifact of value being derived from labor.

You had me until you diss'd personal responsibility. Because, ultimately, we are responible for our own fortunes and failures.

reply to post by beezzer


We are responsible for our own lives and what we do to better them.
We are not responsible for our own fortunes and failures, my experience is that somebody else always decides that for you. whether it is the cost of living, whether you got a high paid job, your grades at school or higher education, what class level your born into etc etc etc, it is more likely if you try hard, but it isn't in your control at the end of the day, other people make those decisions for us. How else do you explain well educated A level graduates working in MacDonalds on a low wage.

reply to post by lifeform11


It still boils down to the choices they themselves have made. No one held a gun to their heads.