Tax cuts for the rich create jobs? In what reality?

Conservatives cry that we must extend tax cuts for the rich – even expand them – because that’s how they can create jobs. Bullshit.

Do you know how the rich, particularly the corporate rich, became that way? By reducing costs. Everything in business is geared toward increasing profits, and if you can’t do it by increasing sales, you reduce costs, and one very popular way to do that is to reduce labor costs, either by paying less or by replacing workers with machines. Do you know what creates jobs? Demand for products and services that exceed production capacities, so that more people have to be hired to meet the demand. And where does the demand come from?

The other 98% of the population, that’s where. Cut their taxes, and they will consume more goods and services, increasing demand and necessitating more jobs to fill it. If they can’t afford to buy, they will save, there will be no need for more jobs, and tax cuts for the rich will do one thing, and one thing only: make them richer (until their businesses start receding due to the lack of demand). All that tax cuts for the rich do is starve the economy.

Posted: March 6th, 2011
at 12:21am by admin

Categories: Politics

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