Slowly Explaining Things To Conservatives: Job Creation

Here is conservative logic on job creation: taxes on business should be little to nothing, because if taxes are high, they won’t use that money to create jobs. Same goes for wealthy people, who are job creators because they buy seven Hummers and yachts for their totally deserving offspring. and that creates a job for us little people to do.

It’s at this point I’d like to refer you to the Underpants Gnomes. You remember them, right? They had this awesome plan:

Phase 1. Collect Underpants
Phase 2. ?
Phase 3. Profit.

Now, let’s apply this conservative logic:

Phase 1. Tax Cuts for Businesses and Wealthy
Phase 2. ?
Phase 3. Job Creation

Only problem? Reality. According to the not so liberal Forbes, history does not support any notion of tax cuts creating jobs. Big companies, small companies, it doesn’t matter. Why is that? It’s very simple, here goes:

CUSTOMERS CREATE JOBS

Three words, that’s all. Now why is that? Because if a company does not have customers (otherwise known as “demand”), there is no reason for it to increase its workforce to create more products (also known as “supply”). So what do customers need, then? They need what’s called “purchasing power.” The more I have, the more I can purchase, thereby fueling businesses. And if you replace “I” with “middle class,” you’ll understand why the US economy is in the shitter.

The middle class represents the largest class of people in the economy, and the more or less money they have determines the overall health of the economy. When the middle class does well, we purchase more, and when we purchase more, companies want to meet that demand, and sometimes have to increase their workforce to do so. Conversely, if the middle class has less to spend, companies will see demand fall, and have to let people go.

So let’s circle back to the main point. Again, repeat after me:

CUSTOMERS CREATE JOBS

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