Republican Myths: ‘Job Creators’

Of course, this tale is totally bogus. The idea that low
taxes on the wealthiest members of our society will drive economic growth and
job creation is patently false. There has been no evidence to ever substantiate
this claim. It is pure fiction. It is taken on as faith and likewise it is the
religion of the Republican Party. Unfortunately it is also an idea that goes unchallenged by
Democrats.
It is in fact consumers who drive 70% of all economic growth,
not rich people and, due to rising income inequality rates, consumers (the middle
class) have less disposable income to spend on goods to drive the economy. An
investment by the government of $1.5 trillion into the middle class, like that of
the most recent GOP Tax cut which went into the coffers of the super wealthy, would
do more to drive the economy than tax cuts ever could. In fact, the greatest economic
expansion in the history of the United Sates occurred between 1950 and 1965
when the tax rate for incomes over $400k (or $3 million in today’s dollars) was
taxed at 91%.
The wealthy do not spend their money. They stock pile it (a lot of it overseas) and therefore it hinders economic growth. An
investment in consumers would generate activity. It works like this: If you
give one thirsty person a $100, they’ll spend $1 on a bottle of water and hold
on to the rest. If you give 100 thirsty individuals $1 each, they will buy 100
bottles of water. This is the activity that creates jobs. If 100 people are
demanding water, someone else will seize the opportunity to supply and sell it to
them. That is how jobs are created. Through demand.
Cutting taxes for millionaires and billionaires has adverse
economic effects. Let’s dispel with this myth once and for all.
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