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Political Factoid
Economic Basics:
- One Theory:
Jobs are created by the wealthy, not by the poor.
- This theory is loudly and repeatedly touted by most Republicans.
- Based upon this theory, the taxes of the wealthy (corporations and individuals)
need to be greatly reduced, preferably totally eliminated, in order to entice the wealthy to create jobs that will grow the economy.
cf.
358,
553,
968,
1667,
957
- The Reality:
The poor spend their money, while the wealthy hoard theirs.
- This explains why all of the Bush-era tax cuts (since 2001) did not grow U.S. jobs.
- The poor live day to day, week to week, paycheck to paycheck. They have no money to spare, no money to save. As soon as they get any money, the money gets spent and that feeds the economy.
- The wealthy have more money than they need to live. They save and invest much of their money (often, outside the United States). This is the infamous "accumulation of wealth" pursued by the affluent.
cf.
180,
283,
479,
518,
621,
867,
1401
- A More-honest Theory:
Jobs are created only if and when there is a demand for goods or services.
- Money that is hoarded does not produce jobs.
- Money in the bank does not produce jobs.
- Investing in stocks and bonds does not produce jobs.
(See Stakeholders.)
- Rising stock prices do not produce jobs.
- Only money spent for goods and services produces jobs.
cf.
724,
586,
1603,
292,
493
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