Sorry, Folks, Rich People Actually Don't 'Create The Jobs' [View all]

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http://www.businessinsider.com/rich-people-create-jobs-2013-11#ixzz2m9DDtV4i

Henry Blodget, Business Insider

. . .

So, if rich people do not create the jobs, what does?

A healthy economic ecosystem — one in which most participants (especially the middle class) have plenty of money to spend.

Over the last couple of years, a rich investor and entrepreneur named Nick Hanauer has annoyed all manner of other rich investors and entrepreneurs by explaining this in detail. Hanauer was the founder of online advertising company aQuantive, which Microsoft bought for $6.4 billion.

What creates a company's jobs, Hanauer explains, is a healthy economic ecosystem surrounding the company, which starts with the company's customers.

The company's customers buy the company's products. This, in turn, channels money to the company and allows the the company to hire employees to produce, sell, and service those products. If the company's customers and potential customers go broke, the demand for the company's products will collapse. And the company's jobs will disappear, regardless of what the entrepreneurs or investors do.


Economic Policy Institute
In the last 15 years, almost all of the income gains have gone to the richest Americans.




Read more: http://www.businessinsider.com/rich-people-create-jobs-2013-11#ixzz2mEG1wLd5