The most important reason the theory that “rich people create the jobs” is absurd, argues Nick Hanauer, the founder of online advertising company aQuantive, which Microsoft bought for $6.4 billion, is that rich people do not create jobs, even if they found and build companies that eventually employ thousands of people.
What creates the jobs, Hanauer astutely observes, is a healthy economic ecosystem surrounding the company, which starts with the companys customers.
The company’s customers buy the companys products, which, in turn, creates the need for the employees to produce, sell, and service those products. If those customers go broke, the demand for the companys products will collapse. And the jobs will disappear, regardless of what the entrepreneur does.
- Rich American Destroys Myth That The Rich Are Job Creators (alan.com)
- Silicon Alley Insider: Finally, A Rich American Destroys The Fiction That Rich People Create Jobs (businessinsider.com)
- Tech Millionaire: ‘The Rich Aren’t Job Creators’ (blogs.wsj.com)
- Harry Reid: Millionaires Who Create Jobs Are “Actually Like Unicorns, Impossible to Find. They Don’t Exist.” (minx.cc)