Letter: Myth buster: Follow the economic roadThe Republican Party has long been promoting the myth that the wealthy and big businesses are “job creators.”
By: Noble Nygaard, Roberts, River Falls Journal
The Republican Party has long been promoting the myth that the wealthy and big businesses are “job creators.”
Yes, they do hire people when they need to manufacture something, but they don’t create the demand for it.
I have a friend who owns a small business. I asked him, “If I gave you $50,000 would you hire another service person?”
He said, “Of course not, I wouldn’t need one.”
Then I asked him, “If you had an additional $300,000 in sales, would you hire a new service person?”
His response was “With that amount of additional business, I would need one.”
My friend would not hire anyone if he had additional money. If he had additional sales, he would be compelled to.
In this case, my friend’s customers created a job by purchasing more of his products.
This is what I call “The Universal Rule of Job Creation.”
If someone buys an appliance, car, truck, boat, box of cereal, or any other product you choose, some company somewhere will have to produce more of these things to replace what we purchased.
When we buy more stuff, factory production has to increase to keep up with demand.
A perfect example of this is the U.S. auto industry. When sales were down, automakers were laying off. We are now buying more cars, and they are hiring.
Enough of this “job creators are the wealthy” malarkey!
We are all job creators every time we buy something. And on the way, us job creators have enriched those wealthy corporations who have produced all the products we purchase.
I believe it was the late Sen. Paul Wellstone who said, “If everyone is working, then everything is working.”
Our system is truly “demand and supply.”