Throughout this Presidential election (and almost any other election recently), the mantra from the GOP has been that a progressive tax system “punishes the job creators.” After all, the “rich” will “create the jobs” for us poor plebes who desperately cling to the hope that we will be gainfully employed one day. After all, the “wealth” generated for these “job creators” will eventually “trickle” down to the rest of us and our economy will one day boom again like it should.

Which is why, they say, we should cut taxes even more to the “job creators” because if we do, then they’ll hire more people.

Here’s the problem: It’s a lie. All of it.

A “rich” person does not create jobs. Never has, never will. The people that create jobs are those who buy products and services.

Our economy is not trickle down. It’s always been built on money — and wealth — rising from those who spend to those who eventually hoard.

When we buy a product or service, we create demand. That demand is what calls for the need for more jobs to increase the supply. Such is the basis of capitalism.

When I asked my partner to help me with my business, it was because I needed help. If it continues to grow at the pace it has been, it will get to the point that we need a third person. Demand. Pure and simple. If it doesn’t grow, we won’t get that third person. It’s not rocket science.

I once tried to “create jobs” for the sake of creating jobs. I learned very quickly that all this does is drain my money faster than a power flush. It doesn’t matter how “rich” someone is — they simply will not “create” a job unless there’s a need for more people. Ever.

Car manufacturers build cars because there’s demand. If people don’t buy a car, then those jobs are lost. Or the manufacturer tries another model.

The wealthiest family in the world, the Walton family, built their empire by hiring low-wage employees. But you’d better believe they only hire the number of people they need to operate their stores, and not one person more. Again. Demand. The job creators are the shoppers at their stores.

No business owner, corporation, or even a low level manager will ever hire someone based on the taxes they pay. That’s not how it’s done. We hire based on … yes, demand. This is part of the reason that most of America’s largest corporations have enjoyed some of the largest profits in history.

Finally, ask yourself this: If these major corporations are raking in money by the bucketful because of the lower taxes they’ve enjoyed, why aren’t they hiring more?

The answer is simple: Taxes do not determine the number of people employed in a company. In fact, every single person hired is part of the cost of doing business, which is computed before taxes hit. Every single employee that is hired will always, ALWAYS be figured in with the appropriate expenses that are incurred with that new hire, including payroll tax and withholdings. Again, it’s part of the cost of doing business.

Let’s review:

  • Rich people do not create jobs.
  • Lower taxes do not create jobs.
  • Rich people do not hire out of the goodness of their heart.
  • Consumers create demand.
  • Demand creates jobs by increasing supply. Nothing more, nothing less.
  • Any “jobs bill” that does not directly affect demand in a field – is useless.

So please, America, stop with this foolishness that “rich people” are “job creators.” They’re nothing of the sort. They’re simply reaping the rewards of the jobs that the rest of us have created. No one punishes them for doing well. Voting for them, however, punishes all of us.

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