Myth of the Job Creator

Republicans and the Wealthy 1% love to foist upon Americans the Myth of the Job Creator.  The myth states that the wealthy, namely, the 1% create all the jobs in American and that is why they deserve all the beneficial tax breaks and freedom from regulation.  By taking money away from the rich and imposing rules of fairness upon them, the savage masses are only hurting themselves.  Of course, I find fault in much of this myth.

To begin with, the 1% are nowhere near the predominant job creators in this country.  Any person who has taken a course in business can tell you that over 90% of all jobs in America come from small businesses.  I will wager that, while well off, the vast majority of small business owners are not among the 1%.  After all, that is a pretty exclusive club.

Another truth is that none of the 1% would be where they are without the middle, or even lower, class spender (99%).  Whether you started a business from scratch, or made your money the old fashion way (inherited it), your money came from the 99%.  If we did not buy the products, you would not be wealthy.  Even selling products exclusively to the rich depends on the 99% because the rich had to get their money from somewhere.  Some person had a great idea and got others to spend money on it and accumulated wealth for which another person had another idea that appealed to this rich person.  What appears spontaneous today really is not.  Adam was not placed upon the earth with a fat trust fund that he used to create jobs for the rest of us.  Man has been building wealth for millennia, which has accrued one transaction at a time and began with the 99%.

The 99%, through their wants and needs, are the true job creators in any culture.  I do not deny that the 1% can create jobs; however, I do deny that they create the majority of the jobs.  As I have stated in other posts, my understanding of the business world comes from my twenty three years in the retail industry.  One lesson I learned early on is that a low retail item with a low markup can trump a high retail item with high markup whenever you factor in sales volumes.  For instance, a one dollar box of hot cocoa could easily bring in more money for a store than a thousand dollar television over a year since the store will sell substantially more cocoa, especially in hard economic times.  The same holds true for the 99% versus the 1%.  While individually we have less income to spend (creating jobs), there are substantially more of us and our economic impact will create more employment opportunities than the 1%.  Another part of the equation is that without the 99% to bring their great ideas to life, the 1% could not begin to make their wealth.  Even if they made the product themselves, someone had to get the raw materials for them to use.  If the 1% truly had to make their product without the 99%, we would still be in the Stone Age.  Imagine trying to market an apple pie if you had to grow, harvest, and process the flour, apples, lemons, cinnamon, eggs, etc. yourself.  Why would you do all that work if only one rich person bought your pie?  The cost/benefit ratio would not be sustainable, kind of like our current economic situation.

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2 thoughts on “Myth of the Job Creator

  1. Thanks. I really try to think these things through but I do like when I get a dissenting opinion that helps me to hone the thought better. I struggled to say this in a way that it could not be twisted into something I did not mean and spent about an hour writing even after having thought about it for a few days. There are more to come but this took longer than I wanted.

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