Skip to main content

Consumer Demand creates Jobs. Average people spending money, to buy stuff -- creates Jobs.

Lowering the Top Marginal Tax Rate DOES NOT create Jobs.  It simply makes Rich people richer. They take their tax gains and invest them.  But plow that extra money back into the economy, by hiring more workers -- Only if the Consumers are demanding it.

And Consumers only Demand it -- more stuff -- when they feel their Jobs and their Futures are secure. Otherwise, most Consumers become super-savers, waiting for that proverbial rainy day.

Now if you give a Middle Class person a Tax Rebate -- say a $600 Refund check -- THAT tends to spur Job Creation, as most Middle Class people will tend to run out and buy a Big Ticket item, they've been day-dreaming about. Found Money.

Millioniares might run out and "buy stuff" too, with their Tax Rebates -- $140,000 of found money.  The thing is there are so fewer Millionaires, than there are Middle Class consumers -- about 1% the count -- that Millionaire spending barely causes a ripple in Consumer Demand pond.

Not unless you call Jewelry, Art, and Yachts (and Hedge Funds) -- the centers of Job Creation in the Private Sector.

Therefore my common-sense, back-of-the-notepad conclusion is:

Tax Cuts for Millionaires does NOT Create Jobs.  

... the kind of Jobs that an Economy of 315 Million people need, anyways.

Need more "proof" of my Job Creation conclusion than the educated musings of an Economic observer?

Well take a look at this. The Data shows that Job Growth happens during periods of higher Marginal Tax Rates.  That's odd.  How could that be?


larger image


Republicans (and too many Democrats) all repeat in unison:

Tax cuts spur job growth.  Tax cuts spur job growth. ... Don't mess with the Job Creators. Don't get them mad. Bring them gifts of even Lower Tax Rates. Maybe a 28% rate will coax them out of their shells?
Who can fathom the rarefied motives of Millionaires?  Or what will really spur them to act hire? ... Where is Greenspan when we need him?  {cough}


Yeah but, what about those Bush Tax Cuts for Millionaires that the Republicans fight tooth and claw, to defend?   How did they do in that Job Growth chart?  Certainly the Bush Tax Cuts led to a boom in Job Growth!?

Well those Bush Tax Cuts "caused" the lowest rates of Job Growth ever.  It's that tiny red bar in the chart.


If Tax Cuts for Millionaires creates Jobs -- Well where are those Jobs?

Give a Millionaire more "found money" in lower Tax Rates, he'll most likely spend it somewhere like China, like Switzerland. He'll bury it in the Cayman islands, Tax-free.

But actually "Hire more people" with that "found money" ???

Not unless there are Customers clearing the shelves.  And then not an employee more than the Business actually needs.

Shoot how do you think they became 1% Rich in the first place -- it certainly wasn't by "giving stuff away" ... stuff like Jobs.

They aren't charities for Pete's sakes!   (They just demand "charity" from us, in the form of ever lower Top Marginal Tax Rates.)

Afterall "They are the Job Creators!"   {cough, cough} {wink, wink}

Everyone knows that.   Silly consumers.  

If you want work, bring them their Tax tributes.  El Pronto, Senior Grover.




EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site