Republican rhetoric would have you believe that the rich are the only job creators. As though creating jobs is somehow a tenant of capitalism. While companies do create jobs, they only create the number of jobs that is necessary to maximize profit or to produce the supply of products that consumers will purchase. Employees are a supply that some businesses need to create products.
If more money in the hands of the rich or companies created more jobs, then we would be setting records, since taxes are at or near record lows for the rich and companies are holding record amounts of cash.
The problem with the belief that the rich create jobs is that it assumes jobs are the motive of companies. Profits are what increases stock prices and nets exorbitant bonuses for the top brass. If job creation was paramount to business success it would be listed on the companies’ quarterly reports.
The reality is that the true job creators are consumers. Consumers can exist without businesses but businesses cannot exist without consumers. Before a monetary system was devised, the barter system was the method used for individuals to satisfy their needs, and with high unemployment the practice has seen a resurgence.
It also should be noted that in 2008 there were more than 21 million firms in the U.S. generating more than $930 billion in sales using zero employees. This means that not every company needs employees to survive, but without consumers, companies are irrelevant.
So while it may be true that the rich create jobs, they cannot do it alone. The success of capitalism requires a balance of companies providing services and products that consumers want and can afford to purchase. If only Congress could find a similar balance instead of staking out positions on the fringes like calling the 1% job creators to the detriment of the other 99%.