Comparatively the middle class creates job with aggregate demand, not the wealthy

[mazzarro]

Ed Schultz interviewed Nick Hanauer - the entrepreneur about job creators. Mr. Hanauer
aptly pointed out that it is the customers (mostly the middle class) that can be
accurately described as the real job creators since their aggregate buying power far
exceeds that of the wealthy.
Why don't democrats use this to counter this misrepresentation of facts by the rePIGs when
they mouth their meme that the rich being the job creators? Democrats should counter with - "no,
it is the middle class with their aggregate buying power that create jobs - period."
This fallacious meme has to to debunked and killed as soon as we can.

[Cary]

1. Democrats do use this

"Conservatives" ignore this fact. They invent their own economic theories that defy reason and empirical evidence. I.e. "supply-side economics" which is to economics what "creation science" is to science.

If you want good economic theory simply read Paul Krugman's blog.

[unblock]

2. more fundamentally, it is DEMAND that creates jobs. that includes government demand

the right-wing has long smeared the notion of government hiring, but government demand is part of aggregate demand and it creates jobs all the same.

fundamentally, economic consumption is an act if HIRING a business to provide them with some goods or services. the "boss" creates jobs only in the sense that that is the means of building the team that the consumers/govermments hired to provide them goods and services. none of the jobs, including the boss's, would exist were it not for that consumer/government demand.

[econoclast]

3. Hate to say... But wrong

According to study done by census bureau and univ if Maryland ... Job growth in the past has come from NEW business formation. In particular from those relatively new businesses just hitting the expansion stage. To the extent that the owners/investors are "wealthy" ... They create jobs. To the extent that those business' customers are the "middle class" ... They create jobs.

Here's the secret .... Real life economics isn't "supply side" vs "demand side". In real life it's supply & demand. Neither one works alone.

[EOTE]

4. Those jobs don't exist without the demand.

You can bet your ass that the wealthy aren't going to invest in those jobs unless the demand exists first. You say that neither supply nor demand work alone. That may be true, but supply side economics has been fully discredited. Providing economic stimulus to the middle class has proven to create demand and stimulate economies.

[econoclast]

5. Actually they do...

Every new business creates jobs .... Even if it eventually fails. As most do.

Moreover, The biggest successes come from products that didn't exist before. Example - There was no hue and cry for tablet computers ( all failed miserably ) until Apple developed the iPad

[EOTE]

6. But the demand for anything doesn't exist when the bulk of the public

has no supplemental income. In times of economic hardship, the right's call has always been toward voodoo economics. It has failed every single time. For sure, corporations can create demand where none had existed, but no appreciable demand can exist without a strong middle class. Supply side economics IS fully discredited. However, providing more progressive taxation has a fairly strong track record of stimulating economies.

[mazzarro]

7. The demand has to be there before you can create the business

You cannot just create a new business when there is no demand for whatever it is the business is supposed to be providing to its customers.

[laundry_queen]

8. I'd be willing to bet

that there was oodles of marketing research Apple did on what people want and they crafted the iPad after that. They knew there was a demand in the market for a product with certain features, and that was what they made. Supply-side marketing disappeared a long time ago as it's not generally an easy task to sell people things they don't think they need. If Apple was not a reputable business with a large cult following, and just came up with an iPad out of the blue as the other tablet makers had, and didn't have the dollars to test market, the iPad would've been a giant failure. Company recognition and status counts for something here. Previous demand for their products created a market for the iPad - without that it would've been a failure like all the other tablets.

[Angry Dragon]

9. You better define your demand and supply

otherwise you are wrong