ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Real Job Creators

Updated on October 7, 2012

Amid the cacophonous noise of the presidential campaign and the incessant backbiting over taxes-- evidenced in the first debate--Republicans sound like a trite old vinyl record whose needle is stuck in the same position, endlessly repeating the tedious mantra of protecting job creators any time there’s a mention of hiking levies on more affluent.

Of course, this is typical Republican propaganda, aimed at keeping taxes low for those making over $250,000, a traditional segment of GOP voters. Granted, in that income category are business owners, but most work for someone else.

The truth is that the actual job creators make much less. In fact, regardless of income, you and I and everyone else are job creators. Every consumer is responsible for creating jobs.

But that simple fact of economics is lost in the rhetoric.

Economic stability and success simply stems from people purchasing products. When the economy tanks, it is because people don’t buy: they lack the resources due to high inflation, high interest rates, or unemployment. These ailments effect severe cracks in consumer confidence; thus, when people lack capital to pay for necessities, they aren’t likely to have any disposal income. And when that happens, everyone cuts back, from the living room to the board room. No one on the economic ladder is immune.

Part of the reason for the continued lagging unemployment numbers is that many employers, forced to cut jobs due to reduced demand, discovered that once the economy began to pick up, their businesses were able to operate just as efficiently without added employees. In short, those working had taken on more responsibilities—with or without additional compensation—so there was no urgency to add more workers.

That likely accounts for about least 1-2% of the unemployment rate. Another 1-2 % can be attributed to public sector employees, such as teachers, police and fireman furloughed due to state budget tightening. It hasn't helped that many politicians (who, by the way, are also government employees) brand those making a living on the taxpayer's dime as ineffectual slugs not worthy of employment and certainly not what they receive in pay and benefits. That recent popular myth has further enraged private sector workers, envious of publicly funded benefit plans. But these critics forget that public employees generally earn less than most in the private sector with similar education and training.

Also missing from that argument is the simple notion that public employees are workers and wage earners. Though branded as slothful and superfluous, they too are consumers, and when they lose their jobs, they naturally spend less, resulting in further negative impact.

Economic empowerment extends to those not working as well. When some in power argue against extending unemployment compensation, they neglect the simple truth that this income allows those without work to continue contributing economically. This is one of the safety nets vital to averting even more dire circumstances.

In short, when people have more money in their pockets (this is why tax cuts are such a popular economic stimulus), they spend more, creating the need for more products and jobs.

Public assistance, as much as many abhor it (largely because it is fraught with fraud and misuse by those who are capable of working), is another safeguard to stave off further calamity. It has a twofold effect. First, it gives recipients spending power. They spend the government dollars, a portion of which returns through tax revenue, and they strengthen the businesses they frequent. Moreover, if these people were left hung out to dry, with no safety net, they would be even more burdensome on society, many through the criminal justice system. Public assistance is one of the necessary evils that we wish we could terminate, but the fallout would prove more vexing than the existing system. As counterintuitive as it may seem, allowing those on assistance the ability to be consumers does aid the economy as a whole.

Every job in America is important, and ideally, we wish everyone was gainfully employed. But that’s not reality. It never has been and it never will be. Still, the fundamental key to achieving economic success is giving consumers, through tax cuts or tax reform, more money to create the jobs we need. It's not just the rich who create jobs; it's all of us.


    0 of 8192 characters used
    Post Comment

    • profile image

      Howard Schneider 

      6 years ago from Parsippany, New Jersey

      Very well said, Gary. Take away money and security from the 99% and the economy will tank. Their demand creates jobs. The top class is now hoarding their cash.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)