The Job Creator Myth

Joe ScarboroughI caught this on The Young Turks. Joe Scarborough on Morning Joe said, “I believe conservative policies help 100% of Americans. I don’t believe it helps the 1%. I really do believe that you don’t help the waiters and waitresses, who want to get a better job, by raising taxes on the job creators. ”

Here is the problem with this comment: I don’t believe it.

There is no way a serious person can have gone through the Reagan and Bush years and still believe that cutting taxes on the rich will cause the them to create jobs. No business decides to create jobs just because they have more money. To say that they do shows a shocking ignorance of how real businesses work.

Let me give you an example. My business partner William and I might eventually hire someone to work for us. We will do that only when there is too much work for us. Otherwise, if we make more money than we feel we need, we will give the money to charity. We won’t hire someone. Business is not a charitable endeavor. And conservatives, more than anyone else, should know this.

This is why I say that Scarborough is lying.

Here is another example, every year WalMart makes billions of dollars in profit. Do they use that money to hire more clerks that they don’t need? Of course not! The very idea is ludicrous. And yet, that is the underlying assumption of the “job creator” myth.

Here is the video:


Perhaps the best refutation of this nonsense is Nick Hanauer’s TED talk. He says, “Anyone who’s ever run a business knows that 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.” Check it out:

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About Frank Moraes

Frank Moraes is a freelance writer and editor online and in print. He is educated as a scientist with a PhD in Atmospheric Physics. He has worked in climate science, remote sensing, throughout the computer industry, and as a college physics instructor. Find out more at About Frank Moraes.

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