Rich guy points out that the top 1% do not create jobs; only a thriving middle class creates jobs

It’s a good read by Nick  Hanauer, a man who starts businesses, invests in and sells businesses, a man who knows the Hoarder Class having more hoarded cash is not going to drive the economy and create jobs.

Holy cow, what a deal, to have my silly ol theory that the economy works when working people have enough to make ends meet and a little more to spend on things they need. How nice to be vindicated for the hair brained opinion that people who are losing real wages can’t buy what the businesses are trying to sell.

Mr Hanauer points out that, though he has an eight figure income, he only really pays about 11% on it. So his wealth builds and sits, because guess what? He only buys about the same number of shirts and pants as most men in a year. And his family has three cars. He did admit to the big expense of a private plane, but also admit that it was French workers, not US workers who built it. And when he fuels it, that money goes overseas too.

He noted that if the middle class got the same amount of the national income as they did in 1980, they would have an extra $13K in their pockets this year than what they will actually have.

So, here is this really smart guy, creator of businesses, stockpiler of wealth, admitting the system has not worked for 30 years.

Think I will send his article to my jerk congressman.  He won’t get it, but what the hell, maybe one of his underpaid staffers will get pissed enough to connect some dots.

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7 Comments (+add yours?)

  1. wolfess
    Dec 01, 2011 @ 17:28:49

    This from the Hanauer article: Significant tax increases on the about $1.5 trillion in collective income of those of us in the top 1 percent could create hundreds of billions of dollars to invest in our economy,
    And this from Rolling Stone: All told, tax breaks cost the government $1.2 trillion each year – far more than defense spending ($744 billion), Medicare and Medicaid ($719 billion) or Social Security ($701 billion). And most of the breaks – think of them as government subsidies delivered through the tax code – go to the wealthy.
    Amazing to realize there are people (rich and reporters — that aren’t) out there that realize the rich NEED to be taxed in order to have the kind of country that we ALL deserve; the kind of country that we USED to have; the kind of country that worked for all of us.

    Tax the rich, or dismember the oligarchs and their political WHORES!

    Reply

    • alex
      Dec 05, 2011 @ 06:18:02

      riches spend their money abroad, on european luxury goods, house in bahamas and hide the rest in Switzerland.

      workers spend their income on local business.

      tax cuts for riches is an economical insanity

      Reply

      • Hardytoo
        Dec 05, 2011 @ 11:00:04

        You nailed it. That’s exactly why tax cuts for the rich are ridiculous. They don’t “purchase” more goods in this Country, they spend it abroad and hide the rest.

        (Great to see you here, Alex. Glad you’ve joined in with “we, the huddled masses.”)

        Reply

  2. KB723
    Dec 01, 2011 @ 19:40:05

    Excellent Post, Voted Up… I think the question is, what direction is the correct one??? Do you think BO has the answer??? Seems lately all he has had is a ‘Compromise’ and more seldom then Not… Not in the Best interest of the folks that went out of their way to contribute to the ‘Change’ he Boasted…

    Fanned and Faved, I hope you are feeling better attila, Best Wishes… 😉

    p.s. I Dig the falling snow… 🙂

    Reply

  3. alex
    Dec 05, 2011 @ 06:15:28

    economy is driven by the masses, never by the elite

    i think it’s day 1 economy classes, maybe that’s why by the end of their studies they have forgotten it

    Reply

  4. alexandrek
    Dec 13, 2011 @ 03:06:15

    it’s an economic basic, a first day lesson, national economy, consumption, is driven by the masses not by the elite!

    buying Louis Vuitton bags and Bahamas villa won’t help, but buying everyday groceries, conveniences, cars will!

    just has it is first day lesson, they forgot it all by the end of their Ivy league school, more remembering tax evasion schemes

    Reply

    • Attila the Blond
      Dec 13, 2011 @ 11:51:30

      Ah, but to forget that lesson, they would have had to have heard that lesson. Pardon my cynicism, but I really don’t think they even consider the rest of us as people. We are just so much resource to be exploited. They see that we make money for them, but they don’t realize we do it with more than just our labors. All they see is us is labor. They don’t get the consumer part.

      Now, their grandfathers (most anyway)probably got that component. But when you are someone who only draws off a trust fund, family estate built of generations, maybe you miss the finer points of how real life works.

      Throw in the One Minute Managers and book taught/ no real world common sense MBAs from the 80s and the whole business thing got sort of flat and two dimensional. And I am being kind there.

      Reply

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