Slate: Entrepreneurs and investors like me actually dont create the jobs—not sustainable ones, anyway. To suggest that we alone are responsible for the jobs that sustain the other 300 million Americans is the height of self-importance and delusion. So, if rich people do not create the jobs, what does? A healthy economic ecosystem—one in which most participants (the middle class) have plenty of money to spend. Entrepreneur Nick Hanauer: What creates a companys jobs is a healthy economic ecosystem surrounding the company, which starts with the companys customers. The companys customers buy the companys products. This, in turn, channels money to the company and creates the need for the company to hire employees to produce, sell, and service those products. If the companys customers and potential customers go broke, the demand for the companys products will collapse. And the jobs will disappear, regardless of what the entrepreneurs or investors do. Ultimately, whether a new company continues growing and creates self-sustaining jobs is a function of the companys customers ability and willingness to pay for the companys products, not the entrepreneur or the investor capital. Therefore, as Hanauer argues, suggesting that rich entrepreneurs and investors create jobs is like suggesting that squirrels create evolution.
Posted on: Tue, 03 Dec 2013 09:51:43 +0000