Rich Entrepreneur, "The Wealthy Aren't Job Creators, Middle Class Workers Are" Think Progress
http://thinkprogress.org/economy/2013/06/07/2123831/rich-entrepreneur-the-wealthy-arent-job-creators-middle-class-workers-are/Bryce Covert on Jun 7, 2013 at 3:30 pm..
from Think Progress
Nick Hanauer
On Thursday, entrepreneur and self-described one percenter Nick Hanauer warned Congress that rich people like him arent the engines of the economy. In a testimony before the Senate Banking Committee, he explained why, in fact, middle-class workers are the economys real job creators:
In the same way that its a fact that the sun, not earth is the center of the solar system, its also a fact that the middle class, not rich business people like me are the center of Americas economy. [ ]
As an entrepreneur and investor, I have started or helped start, dozens of businesses and initially hired lots of people. But if no one could have afforded to buy what we had to sell, my businesses would all would have failed and all those jobs would have evaporated.
He described what he calls a virtuous cycle in which middle class consumers have money to buy goods, which increases demand and therefore hiring. The rich, on the other hand, dont fuel the economy with their consumption in the same way. I earn 1,000 times the median wage, but I do not buy 1,000 times as much stuff, he noted.
NYC_SKP
(68,644 posts)Xipe Totec
(43,892 posts)Stuart G
(38,458 posts)A Republican businessman's meeting. It was generally ignored by them but discussed here and in the progressive media.
Notafraidtoo
(402 posts)This is how i explain democratic economic and tax policy to people who are bombarded with trickle down from the media,It works people understand when you explain that the rich cant be the engines when they don't spend as much as a 1000 people with equal amounts of money.
sheshe2
(84,057 posts)Well said by Mr Hanauer!
Kick and Rec!
undergroundpanther
(11,925 posts)The lower class is.Being poor,every dollar you get is spent.People on SSI,Foodstamps we spend all we have.Thus all we get gets put back into the economy.
https://www.commercialappeal.com/news/2012/dec/30/poverty-industry-drives-memphis-economy/?print=1
blkmusclmachine
(16,149 posts).
Populist_Prole
(5,364 posts)Is how REALLY angry the shills for the 1% get whenever demand-side economics is touted: It's clear they know we ARE paying much attention to the main behind the curtain. It really sets them off because they know, they KNOW that if demand-side economics were practiced in the US that their gravy train will blow up in flames.