Lowering the tax rate on the rich, the “job creators”, will help job growth.
Many Republican politicians, even some Democrat politicians, are claiming that this concept will create jobs. If the economic elites have lower tax burdens, because they don’t have enough money as it is, they will in return create jobs, be it in a corporation or a privately owned business.
This is a lie.
The rich are rich because they save money. The upper-class are not selfish devils, but they are not job creators either. Lowering the tax rate on the economic elite will not create jobs.
As I said earlier, the rich are rich because they save their money. The upper-class is not just a collection of random, often pretty, people that got it lucky in life. Most all of these individuals studied hard in college and grad school. They worked hard starting at entry level jobs and working their way up, be it in finance or medicine or engineering. On top of hard-work, these individuals saved their money. They lived within their means and saved enough money to send their kids to school and be able to retire. And in a really obvious statement, how can a corporate employee earning $300k a year create a job if he/she does not have the power to? Even if they are entrepreneurs own businesses, the rich will not create jobs with the extra money. The fiscally responsible thing to do with the extra money from lower taxes is to save it. Retirement benefits and social security withdrawals are all being moved further back. Saving any money from lower tax rates will help in being financially secure. In a capitalist economy, the individual is expected to work hard, take risks, and collect wealth; not give welfare jobs with any disposable income.
Now that we are on the idea of the accumulation of wealth, the wealthiest “people” of all, corporations, will not create jobs with lower tax rates. The liberal media heckled Mit Romney when he said that corporations are people, but wrongly so. In pure legal context, Romney was correct, corporations are people. Not saying that it is right, just saying that it is a fact in the legal context. So technically corporations are legal context. Common wisdom would lead to the belief that these companies would create jobs. Most Americans work for a corporation. But as jobs are being cut, profits are going up.
Corporate profitability in America has not just rebounded from the recession of 2008 but increased. But with this increased profitability, there has not been an increase in jobs. This is due to the fact that the purpose of a corporation is to make a profit. Its status as incorporated means that its duty is to return max profits to its shareholders. Creating jobs, when they are unnecessary, does not create profit. This does not make corporations monsters. They are only doing their jobs to the best of their abilities. Lowering taxes will just give corporations more profits, thus satisfying their shareholders even more.
But the main reason that tax cuts on the rich won’t work is not a direct result of the decisions of the rich. As mentioned earlier, corporate America is currently more profitable than ever. The recession helped these companies “trim the fat”. The record profits show that there were so many expendable corporate jobs during the economic boom before 2008. Why would corporations rehire these people if they do not bring value to profit-making? It makes absolutely no sense. Getting rid of the fluff jobs helped refocus companies and made current employees work harder. The recession was a lubricant to corporate America, removing all the gunk and cleaning up the engine.
Now I am wondering the same thing as you, how do we create jobs? That is a difficult question that not even the president can effectively answer, much less a blogger. Although I am against the mainstream Republican idea that lower taxes on the rich will create jobs, I am in agreement that government cannot create enough jobs. Liberal tv hosts like Rachael Maddow suggest that hiring people to work in infrastructure is a great idea. Create jobs while improving America. This is a great short-term idea, but when the construction worker fixes the bridge, where will he work? Long-term job growth will be in new industries. Corporations want students with specific education focuses like statistics, and emerging industries like biochem need as many educated workers as they can get. But the government cannot force anyone to pursue these fields. It is up to the individual to pursue fields where jobs are growing.
Fox News says to lower taxes on the “job creators”. Although this is what the the Fox News demographic wants to hear, this will not work. If wealthy individuals and corporations are making profits and are financially secure, there is no incentive to create jobs. Republican politicians always talk about incentives; there is a perfect example where their policies do not create any. Smart wealthy individuals save their money, and lowering tax rates on them will give them more to save. They are not selfish, they are smart. The right wing says that it is not the role of the government to create jobs, but nor is it the role of wealthy Americans. Expecting the rich to create jobs is basically an indirect way of giving out social welfare. The unemployed cannot expect the rich to handout jobs, rather, they need to look into fields where jobs are needed.
America did not become America through handouts, public or private. America became America through a pursuit. The pursuit of life, liberty, and happiness.