December 02, 2011
Where the Jobs Are

We need more rich persons like this:

ÖIím a very rich person. As an entrepreneur and venture capitalist, Iíve started or helped get off the ground dozens of companies in industries including manufacturing, retail, medical services, the Internet and software. I founded the Internet media company aQuantive Inc., which was acquired by Microsoft Corp. in 2007 for $6.4 billion. I was also the first non-family investor in Inc.

Even so, Iíve never been a ďjob creator.Ē I can start a business based on a great idea, and initially hire dozens or hundreds of people. But if no one can afford to buy what I have to sell, my business will soon fail and all those jobs will evaporate.

Thatís why I can say with confidence that rich people donít 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.

When businesspeople take credit for creating jobs, it is like squirrels taking credit for creating evolution. In fact, itís the other way around.

It is unquestionably true that without entrepreneurs and investors, you canít have a dynamic and growing capitalist economy. But itís equally true that without consumers, you canít have entrepreneurs and investors. And the more we have happy customers with lots of disposable income, the better our businesses will do.

Thatís why our current policies are so upside down. When the American middle class defends a tax system in which the lionís share of benefits accrues to the richest, all in the name of job creation, all that happens is that the rich get richerÖ


Posted by Jerome Doolittle at December 02, 2011 03:51 PM
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... that the rich get richer - but that's the whole point of capitalism, isn't it?

Posted by: Peter on December 3, 2011 8:35 AM

An excellent read.

Posted by: John Anthony Curran on December 4, 2011 9:04 PM
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