A PROGRESSIVE VOICE FROM THE LLANO ESTACADO

Tuesday, May 22, 2012

Democrats Are The Real Job Creators

I have already written one post (on May 10th) about this (that many more private sector jobs have been created under Democratic administrations than under Republican administrations), but it never hurts to have a good graphic representation of the truth.

But how can this be? Haven't the Republicans told us that jobs are created by rich people and rich corporations (and it does seem to make sense that you must have money to create jobs)? While that may make sense on the surface (to people who don't understand economics), it is just not true. Jobs are not created by rich people. Jobs are created by the demand for goods and services.

Look at it this way. Would it make any sense for rich people or corporations to hire new workers to produce a good or service for which there is no demand (which most people either can't or don't want to buy)? Of course not. Businesses are in business to make money, and hiring workers to produce a good or service for which their is no demand would be a great way to lose money. Without demand, there is no job creation -- no matter how much money the corporations or the 1% have.

How is demand created? Demand is created when massive numbers of people have money to spend. And you can be sure that when massive numbers of people have money to spend on goods and services, the rich and the corporations will hire workers to meet demand for goods and services (because they will make a nice profit by meeting that demand).

Democrats are better at creating private jobs because they are better at creating demand. Their policies encourage a fairer distribution of wealth and income throughout the population. This is done by a variety of measures (progressive taxation, decent minimum wage, strong unions, sharing of productivity gains between workers and owners through higher wages, good health care coverage so the sick aren't bankrupted, strong support of public education, financial assistance for college, support for the poor, Social Security and Medicare for the elderly, etc.).

The Democratic policies spread the wealth throughout most of the population, and when the workers and middle class go to spend that money -- demand is created (which means more profits for the rich and the corporations). Democratic policies benefit everyone.

But Republican policies benefit only the rich and the corporations, by allowing them to hoard money and not pay their fair share of taxes. Their policy has taken money from most Americans and funneled it to the richest Americans -- creating a vast gap in wealth and income. The rich now have lots of money to spend, but they don't have the numbers to create massive demand (which is the job creator). Meanwhile, the masses of other Americans no longer have enough money to spend to create the necessary demand for job creation.

Once you understand this simple truth, it is easy to see why more private sector jobs are created under Democratic administrations than under Republican administrations.

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