Sunday, June 03, 2012

Question For GOP - Where Are The Jobs?

The GOP has repeatedly told Americans that the way to massive job creation is to give corporations and other rich people more money through massive tax cuts. Well, that has been achieved. We already know that the rich in this country are currently making record-breaking profits (and have seen their income rise about 270% in the last thirty years). And thanks to the Bush tax cuts for the rich, they have a top tax rate that is lower than at any time since World War II (and many of them pay far less because most of their income is in capital gains, which is taxed at only 15%). The richer are richer than ever before.

And as the charts above show, the same thing is true for American corporations. Their profits as a portion of Gross Domestic Profit (GDP), shown in the top chart, and their after tax profits, shown in the bottom chart, are both higher than they have been at any time since World War II (and their effective tax rate is lower than at anytime since World War II). This has resulted in corporations sitting on trillions of dollars, but they are not creating many jobs. This leaves me with a question for the GOP:

Where are all the jobs you promised?

There have been some jobs created by American corporations, but most of them have been created in other countries -- not in the United States. Since the corporations and the rich people have more money than ever before, why aren't they creating massive amounts of new jobs? Because the Republicans have been lying about job creation. Either that, or they don't have a clue about the laws of economics.

Allow me to once again repeat one of the most basic economic facts -- rich people do not create jobs, an increased demand for goods and services is what creates jobs. Giving rich people and corporations more money just fattens their bank accounts, and they would be foolish to spend any of that money to hire more workers when there is no increased demand for goods and services. If they hired more workers, but did not sell more goods and/or services, they would lose money (and no business wants to lose money).

So, how can we increase demand? We do that by putting more money in the pockets of people who would spend it -- the poor, the working class, and most of the middle class. And when that money is spent, demand is increased (and the rich the corporations, and even small businesses will then hire new workers to meet that demand).

That's the way our free enterprise system works. By taking money from the 99% and giving it to the 1%, the Republicans are actually decreasing demand and hurting job growth. And they don't care, since they only care about the rich anyway. That's why they need to be booted out of office in November.

1 comment:

  1. Ted,
    I've been asking that question for a long time. W promised that his tax cuts for the rich would create many new good-paying jobs. Didn't happen. That was a lie. Boner promised in 2010 that if the GOP took over the House, job creation would be a top priority and thousands of new good-paying jobs would result. Didn't happen; in fact, the Teapublicans voted down and blocked all attempts to provide new jobs. The Republicans are mainly opportunistic liars who only really deliver for the very rich.


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