Rich people create lots of jobs, don't they?

OldWiseGuy · Jan 16, 2012

No sane rich person stuffs his money in a mattress. Their money is at work in the general economy (sadly this includes the global economy as well) producing stuff and employing people. Even money stashed in banks is loaned out for productive purposes. If you wrestled a rich man to the ground he probably won't have any more money on him than you do.

There is a terrible misconception that rich people get stuff for free; that they don't have to pay for it. The truth is that the yacht, house, cars, vacations, clothes, schools, or whatever, is paid for, and employs many people. Whenever you see the trappings of wealth be assured that the rich person didn't produce them by himself. You and I did, and were paid well for doing so.

Without the rich the 'finer things of life' wouldn't exist, and we would all be poorer as a result.

Beside all that, I would like to become rich myself some day.

Cactus Jack · Jan 16, 2012

Amen to that! I disagree with the title, however. What creates jobs is the entrepreneurial spirit. he ability to get out there and get things done. Want a job, but can't find one? Quit looking for a boss and starting looking at opportunities. Find an opportunity to start a small business. Or do odd jobs. Do....something. It's better than doing nothing.

Rion · Jan 16, 2012

Wise words, my friend.

stamperben · Jan 16, 2012

Most jobs in this country are created by small business, Mom and Pop operations. It is a terrible misconception that the "rich" are responsible for the employment we have.

heymikey80 · Jan 16, 2012

stamperben said:
Most jobs in this country are created by small business, Mom and Pop operations. It is a terrible misconception that the "rich" are responsible for the employment we have.

Uh, if you check, the democrats classify these "mom & pop" operations as "rich".

Many shall go under if the democrats get their taxes increased. They may be barely surviving now, but frankly anything that survives all the regulation on corporations today is making quite a bit of money just to keep afloat.

That's the problem.

So I'm a republican.

stamperben · Jan 16, 2012

heymikey80 said:
So I'm a republican.

I have checked on who the plans to tax are on, and it is not on the small businesses.

So I'm a socialist. What's your point?

Archaeopteryx · Jan 16, 2012

Watched this on TV recently:
The Beast File: Woolies and Coles (HUNGRY BEAST) - YouTube
It's an Australian example, but it's relevant.

MachZer0 · Jan 16, 2012

Archaeopteryx said:
Watched this on TV recently:

It's an Australian example, but it's relevant.

I've never seen that on my TV. What station is it on?

TemperateSeaIsland · Jan 16, 2012

Not many people are employed to cater to the direct demand created by the "rich" most are employed to cater to the demand of the wider population. If the demand by the wider population exists the "rich" through having the most capital can create jobs to boost production to meet the demand. Here in the Uk at least the demand just doesnt seem to be there, for example a wholesaler a friend of mine works for is cutting about half of their staff as sales have been so bad.

Archaeopteryx · Jan 16, 2012

MachZer0 said:
I've never seen that on my TV. What station is it on?

I'd be surprised if you did see it on your TV -- it's from the Australian ABC.

jayem · Jan 16, 2012

TemperateSeaIsland said:
Not many people are employed to cater to the direct demand created by the "rich" most are employed to cater to the demand of the wider population. If the demand by the wider population exists the "rich" through having the most capital can create jobs to boost production to meet the demand. Here in the Uk at least the demand just doesnt seem to be there, for example a wholesaler a friend of mine works for is cutting about half of their staff as sales have been so bad.

I agree. Stictly speaking, demand creates jobs. Entrepreneurs start businesses, but without demand, they won't last long. And all too often, once the businesses become lucrative, the jobs start going to India and Malaysia.

Touma · Jan 16, 2012

oldwiseguy said:
No sane rich person stuffs his money in a mattress. Their money is at work in the general economy (sadly this includes the global economy as well) producing stuff and employing people. Even money stashed in banks is loaned out for productive purposes. If you wrestled a rich man to the ground he probably won't have any more money on him than you do.

There is a terrible misconception that rich people get stuff for free; that they don't have to pay for it. The truth is that the yacht, house, cars, vacations, clothes, schools, or whatever, is paid for, and employs many people. Whenever you see the trappings of wealth be assured that the rich person didn't produce them by himself. You and I did, and were paid well for doing so.

Without the rich the 'finer things of life' wouldn't exist, and we would all be poorer as a result.

Beside all that, I would like to become rich myself some day.

Yeah a team of 6 people to clean and operate a yacht really employs so many people! Almost as many as the factory that employed 7,000 before it closed down and shipped over seas so the rich man can afford a new yacht.

Anovah · Jan 16, 2012

oldwiseguy said:
No sane rich person stuffs his money in a mattress. Their money is at work in the general economy (sadly this includes the global economy as well) producing stuff and employing people. Even money stashed in banks is loaned out for productive purposes. If you wrestled a rich man to the ground he probably won't have any more money on him than you do.

What happens when that bank is overseas?

There is a terrible misconception that rich people get stuff for free; that they don't have to pay for it. The truth is that the yacht, house, cars, vacations, clothes, schools, or whatever, is paid for, and employs many people. Whenever you see the trappings of wealth be assured that the rich person didn't produce them by himself. You and I did, and were paid well for doing so.

What happens when the rich get such a substantial tax break on, oh lets say capital gains, and is now literally getting hundreds of thousands more in their tax refund.

At that point, are they really paying for those yachts, houses, cars, vacations, cloths, schools, or whatever or are they gaming the system and using tax payer dollars to do it?

Without the rich the 'finer things of life' wouldn't exist, and we would all be poorer as a result.

Beside all that, I would like to become rich myself some day.

Me too!

PHenry42 · Jan 16, 2012

The OP is guilty of committing the fallacy of the seen and the unseen, courtesy of Bastiat.

Redistributing money to the rich doesn't increase consumption. For every $ that gets redistributed to a rich person, he may consume that much more, but a poor person consumes an equal amount less.

Schroeder · Jan 16, 2012

stamperben said:
Most jobs in this country are created by small business, Mom and Pop operations. It is a terrible misconception that the "rich" are responsible for the employment we have.

well seeing how obama has made the conclusion that the rich need to pay more and they are those who make over 200,000 which is a small business income maybe your wrong. An awful lot of income in business goes back to the business in one way or another. the most i ever earned in a year was when i owned my own business but i was no richer because of this. most of it went right back into the business. It would have taken many years to get to the point of making extra income or to become wealthier as in being able to purchase more things outside of business. So i have no problem with those who make it that far. it is very hard work to get to that point. So you may say small business but that is where every business started from at some point.

Schroeder · Jan 16, 2012

Touma said:
Yeah a team of 6 people to clean and operate a yacht really employs so many people! Almost as many as the factory that employed 7,000 before it closed down and shipped over seas so the rich man can afford a new yacht.

that is your assumption though. maybe they went overseas because they could not compete where they were because of the government regulations. You may be right in some cases but not all. government does not help any business. They only take from them. Well except for when they subsidies them which hurts everyone usually. this destroys capitalism. which is our biggest problem at the moment government trying to choose winners and losers.

OldWiseGuy · Jan 16, 2012

stamperben said:
Most jobs in this country are created by small business, Mom and Pop operations. It is a terrible misconception that the "rich" are responsible for the employment we have.

The misconception is that these small businesses would remain viable in the absence of big business. We all know what happens to cities and towns when 'the factory closes'. The town dries up.

blueapplepaste · Jan 16, 2012

The rich are richer than ever, and there is still a shortage of jobs. The rich don't create jobs, demand creates jobs.

OldWiseGuy · Jan 16, 2012

Touma said:
Yeah a team of 6 people to clean and operate a yacht really employs so many people! Almost as many as the factory that employed 7,000 before it closed down and shipped over seas so the rich man can afford a new yacht.

Don't forget all those employed in the design, production, and sales of yachts, those employed in the marinas and maintenance facilities, the suppliers of food and drink, and on and on.

As I stated in the OP people don't think that money flows because of spending on luxury goods. I assure that rich people don't build yachts, they buy them, using actual MONEY.

If a rich person shows the trappings of wealth, i.e. home, cars, yachts, etc. be assured that someone down the line received a paycheck. A rich person with a $million worth of stuff paid a $million for it. He doesn't have the stuff and the $million. That money is long gone, into the general economy.

I am aghast that people still don't understand this.

Rion · Jan 16, 2012

stamperben said:
I have checked on who the plans to tax are on, and it is not on the small businesses.

So I'm a socialist. What's your point?

You do realize that most small business owners file as individuals, right? Most of the $250,000+ crowd are small business owners. Nor are they actually making that much. That's just the SALES, not the profit.

As for being a socialist...? At least you're honest about it.

Rich people create lots of jobs, don't they?

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