Before You VOTE, read this...

Do rich people create jobs?

Sorry, Republicans, but rich people are not "job creators." They never have been and never will be. No one ever invests in anything to create jobs. Employing people is a by-product of capitalism.Those are the views of the venture capitalist Nick Hanauer, a multimillionaire who was recently invited to speak at a TED conference. The conferences are well-known gatherings featuring talks on a variety of topics and can be viewed online.  “Rich people don't create jobs,” says Hanauer, “nor do businesses, large or small. What does lead to more employment is a "circle of life" like 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 middle-class consumer is far more of a job creator than a capitalist like me.”

Hanauer added this little zinger as well:

 

"So when businesspeople take credit for creating jobs, it's a little like squirrels taking credit for creating evolution. In fact, it's the other way around."

The Republican focus on cutting taxes for millionaires and billionaires is all wrong. For one thing, wealthy people -- ones with smart investment advisers -- know to put a good chunk of money in tax-free investments such as municipal bonds. Some also minimize their tax burden by putting their money in off-shore tax havens. If those people paid less in taxes, odds are that the windfall would wind up in those accounts. Few, if any, jobs would be created.

Another flaw in the Republican argument is the idea that the rich have an onerous tax burden. As The New York Times noted earlier this year, the tax burden paid by the wealthiest Americans has fallen significantly over the past few decades. Warren Buffett, among others, has made similar points.

"Between 1985 and 2008, the wealthiest 400 Americans saw the percentage of their income paid in federal income taxes drop from 29% to 18%," the paper reported, citing data from the Internal Revenue Service.

Income inequality should become the central issue of the presidential campaign. Heck, it should be the most important issue of the 21st century. I am not holding my breath for that to happen.

Have you heard of Jonathan Berr?  He is the one who wrote this article.Few people have, but you can:  follow Jonathan Berr on Twitter @jdberr.

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