Your Daily Republic has an online presence at www.dailyrepublic.com, and you can take an active role expressing your opinion about the articles you read. For example, last week’s piece, “Thank you Fairfield job creators,” had a discussion about “job creators.”
RLW wrote: “Job Creator.” Isn’t that a great term? The right invented it to label their wealthy patrons, because it sounds so much better than ‘the right’s wealthy patrons.’ I think they literally sit around a table and think up this stuff. We don’t have to be fools and fall for it.” . . . “Consumers, not suppliers, are the true job creators. The suppliers are followers; consumers are the leaders. Consumers should get the tax cuts and federal assistance.”
Mr. Practical contributed: “Actually, the first credited use of the term ‘job creators’ was by Ayn Rand. Debating whether consumers or suppliers are the job creators is a chicken or the egg argument and there is no right answer.”
To which RLW responded: “Suppliers are only job creators in that they respond to demand. Consumers . . . are the ones who create that demand. . . . (U)nfortunately, if the suppliers take the ideas out-of-country for production, minimal jobs are created here. The middle class contracts while the top 1 percent gets a greater share of national income. Ayn Rand wouldn’t care; she didn’t care. But she also lived in a world before a global economy, so she didn’t have ideas shaped by that phenomenon.”
Many studies have been done by congressional bean-counters and academia showing tax cuts for the 95 percent to 98 percent of us Americans on the bottom creates jobs, but there is really no noticeable effect on our nation’s economy when you cut taxes on the rich. If ordinary people can’t afford to buy, why would anyone ever invest in increased production?
The consumers, not the rich, are America’s real “job creators.” We need to scrap the idea that the wealthy are somehow, by definition, “job creators.” That term is simply a political marketing tool, designed to have workers vote for tax cuts for their bosses. These right-wing proposals to cut income taxes for the rich, deregulate industries, end estate taxes, and union-busting “right to work” legislation certainly generate more wealth for the wealthy, but do not create jobs.
“Wealth creation” is not “job creation.”
Today, like during the Great Depression, there exists a great disparity between the wealthy and everybody else. In the early 1970s the solid, rising correlation between American worker productivity and his wages diverged and has remained disconnected. Adjusted for inflation, a real American worker’s wages have been stuck at levels found in the 1970s even as our productivity soared.
The increased profits now all rise to the top and while the American middle class continues to get squeezed, today’s corporate bosses get many hundreds of times the pay of their workers. Today, American corporations are holding onto trillions of dollars of idle cash while still “downsizing,” trying to squeeze more and more productivity out of fewer and fewer workers.
Quality, loyalty and service suffer, but they don’t have columns on any corporate balance sheet, and when workers crumble, there are plenty more waiting to take their place at significantly lower wages and with fewer benefits.
Ayn Rand’s philosophy was pure, unadulterated selfishness and greed. She wrote “Atlas Shrugged” in 1957 when the top income tax rate was 90 percent, and the top corporate rate was 55 percent. There were valid reasons for complaint, but not today. Today, the wealthy and their corporations enjoy the lowest tax rates in many decades.
It’s senseless for right-wing politicians to continue pushing Ayn Rand’s dogma. Greed already won.
Care to comment?
Mike Kirchubel grew up in Fairfield and is the author of “Vile Acts of Evil – Banking in America.” He can be reached at firstname.lastname@example.org.