“Rich people don’t create jobs”: A 6-minute evisceration of free-market dogma

Remarkable piece of video shown last night on “The Last Word With Lawrence O’Donnell,” required viewing for any liberal, Dem or Prog. It’s a six-minute talk by Nick Hanauer, a wealthy venture capitalist who was one of the original investors in Amazon.com.

And in six minutes, he absolutely destroys the “cut taxes on wealthy job creators” dogma of Mitt Romney, Paul Ryan, Bruce Lisman, and all their Galtian buddies. A few quotes to whet your appetite:

Rich people don’t create jobs. Jobs are a consequence of a circle-of-life feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring.

In this sense, an ordinary consumer is more of a job creator than a capitalist like me.

Hiring more people is a course of last resort for capitalists. It’s what we do if — and ONLY if — rising consumer demand requires it.

In a capitalist economy, the true job creators are middle-class consumers. Taxing the rich to make investments that make the middle class grow and thrive is the single shrewdest thing we can do for the middle class, the poor, and the rich.

This is a green-eyeshade version of Progressivism — tax the rich and boost the working and middle classes, not as a way to achieve some socialistic model of equity, but as the BEST way to create a prosperous capitalist economy.

I find it compelling and brilliant, and I urge everyone to watch it.  

2 thoughts on ““Rich people don’t create jobs”: A 6-minute evisceration of free-market dogma

  1. This is the TED Talk that the TED founder was trying to ban!!!  They said it was ‘too political’ and ‘too controversial’!

    So pointing out that the entire GOP fiscal plan for the last 40 years is 100% false is too partisan and controversial, huh?

    http://crooksandliars.com/kenn

    http://www.alternet.org/story/

    http://nationaljournal.com/fea


    National Journal e-mailed Anderson to request an interview about what made a talk on inequality more politically controversial than, for example, contraception or climate change. Anderson, who is traveling abroad, responded with an e-mail statement that appeared to swipe at the popularity of Hanauer’s speech.

    “Many of the talks given at the conference or at TED-U are not released,” Anderson wrote…. “We have a general policy to avoid talks that are overtly partisan”

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