There’s some required reading on the Bloomberg site, Raise Taxes on Rich to Reward True Job Creators by Nick Hanauer, that goes to the very heart of what Small Business Minnesota is all about.
Our businesses don’t exist or succeed solely on our brilliance as entrepreneurs. We are just one part of a dynamic that includes our communities and our customers. Our collective well being creates and sustains the cycle of business that allows us all to flourish.
Hanauer makes the point that without demand there would be no business and if the middle class cannot consume, businesses will not thrive (a lesson Henry Ford learned almost a century ago).
That’s why I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is the feedback loop between customers and businesses. And only consumers can set in motion a virtuous cycle that allows companies to survive and thrive and business owners to hire. An ordinary middle-class consumer is far more of a job creator than I ever have been or ever will be.
The single minded focus on business success alone (actually big business) has destroyed the dynamic and naturally our economy. Today it seems many wealthy individuals and big businesses measure success by their own success, but is it really “success” if their actions impoverish millions and destroy the middle class? This country has been most successful when wealth was more equitably distributed -and at this point in time it may be the only thing that saves us.
It is mathematically impossible to invest enough in our economy and our country to sustain the middle class (our customers) without taxing the top 1 percent at reasonable levels again. Shifting the burden from the 99 percent to the 1 percent is the surest and best way to get our consumer-based economy rolling again.
So let’s give a break to the true job creators. Let’s tax the rich like we once did and use that money to spur growth by putting purchasing power back in the hands of the middle class. And let’s remember that capitalists without customers are out of business.
The article frames this issue exceedingly well and we recommend it to all of our members.