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To: ksen

wealthy that create jobs but consumers


No “consumer” (a weird abstraction because businesses are consumers too) has ever created a job. Jobs are created by people with money who hire people to perform tasks. That’s what a job is - when someone is hired to perform a task. When you take money away from people looking to hire they can’t hire people. When you take money away from people who can most effectively invest that capital you get less investment. It’s simple logic.

The problem with the graph is inflation and monetary policy and the lack of a true free market economy in which inefficient producers are weeded out and costs come down making real wages go up.


51 posted on 01/03/2013 11:21:58 AM PST by garbanzo (It's the end of the world as we know it and I feel fine)
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To: garbanzo
Jobs are created by people with money who hire people to perform tasks.

And if there are not enough people with disposable income to purchase the item/service being produced then the person with money isn't going to waste time hiring anyone. When income gets overly concentrated at the top you necessarily have less than optimum spending going on in the economy by virtue of the marginal propensity to consume.

53 posted on 01/03/2013 11:58:25 AM PST by ksen
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