The Job Creation Hoax I 10 Economic Myths Debunked #8
Corporations and CEOs are job creators who need tax cuts and fat profits to generate jobs.
Most American jobs are created by poor, working, and middle class people, whose spending on goods and services causes businesses to create jobs.If most Americans don't have enough purchasing power, businesses won't hire.
In 1914, Ford Motor Company boosted its workers wages. Their employees could afford to buy Model T Fords, enlarging the demand for Model Ts, thus creating more jobs at Ford. The Great Crash of 1929 ushered in the Great Depression of the 1930s because people didn't have enough money to buy the goods and services the economy could produce, which caused a vicious cycle of fewer jobs and even less money in the pockets of average people.
The cycle only ended when the government stepped in through vast public spending on World War II.
So when you hear that corporations need tax cuts in order to create more jobs, or that tax increases on corporations and the wealthy are job killers, know that this is baloney.
The best way to create more jobs is to put more money into the pockets of more workers. Which is why we need a higher minimum wage, an expanded Earned Income Tax Credit, and stronger unions that can bargain for higher wages.
Remember, it's working people who create jobs when they have enough money in their pockets to buy.