Mythbusters: Do the Rich Create Jobs?

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economics-trickle-downSlate dives into America’s biggest modern-day myth: That the rich are “job creators.”

Slate busts that myth pretty quickly. As it turns out, big corporations and rich venture capitalists are not creating jobs. But a healthy middle class will.

From Slate:

It’s like saying that a seed creates a tree. The seed does not create the tree. The seed starts the tree. But what actually grows and sustains the tree is the combination of the DNA in the seed and the soil, sunshine, water, atmosphere, nutrients, and other factors that nurture it. Plant a seed in an inhospitable environment, like a desert or Mars, and the seed won’t create anything. It will die.

Without a healthy economy — without a strong middle class — it doesn’t matter how many “seeds” investors plant.

Why is this misconception so significant? Because this very wrong, very misled idea that the rich are job creators is what has led to our astounding, sky rocketing income inequality — income inequality that is at its worst since the great Depression. “Trickle down” economics do not work — yet it’s what our nation’s tax policy is built on.

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