We encounter a lot of commentary concerning “job creators” and their role in revitalizing our economy.
Much talk orbits the topic of proposed taxation of the rich, with several proposals made to tax Americans with incomes over $250,000 per year as a way to raise revenues that, with spending cuts, could ease the debt problem. Another proposal supplanted these, urging increased taxation of “millionaires.”
Some polls show many Americans favoring increased taxes on the wealthy; others show many “millionaires” willing to pay more, and there has been a backlash against both notions.
One of the lynchpins of the backlash is based on the claim the wealthy are “job creators.” If we tax job creators, well, they won’t create jobs. This is wrong.
A note should be made at this juncture: to lump, say, Wall Street traders, bankers and hedge fund managers, with the “wealthy” owner of a small industrial firm, is wrong — a mistake made by many who protest obscene profits taken by a few Americans over the past decade or so, and who rail against the increasing, disproportionate distribution of wealth in our country. Not all wealthy Americans are villains. In fact, few are villains.
But, here, if we single out the “wealthy” businessperson, we can examine the faulty notion of the “job creator.”
The connection of wealth with job creation ignores reality: a business owner did not become wealthy because he or she established a central goal of creating new jobs. New jobs are a consequence of the satisfaction of the actual goal: profit.
A manufacturer seeks to produce an item in the most efficient way, one that can then be marketed to a maximum number of consumers, thus creating profit. Brick and mortar facilities and employees count against profit; they are expenses. It is not efficient to own, maintain and pay taxes on too much property, or to employ too many workers.
Jobs are created only when necessary and, if recent experience proves true, many American companies are more profitable with fewer American employees.
But, in an expanding economy, certain sectors, certain industries and businesses will need more employees
New and expanding business is the “job creator.”
The task, then, is to stop focusing on nonsense like identifying wealth with job creation or evil (be it by a Tea Party member or someone protesting on Wall Street) and discuss how new business can be created and flourish. How new wealth can be created.
We need an educated work force, with potential employees well trained in areas sure to see an increase in business or start-ups. Our education systems are not doing the job at present, and those who deny the need to better fund our systems work against our collective best interests.
We need money from the banks, for investment.
We need increased incentives, at all levels, for creation of new business or expansion of existing business.
The regulatory and bureaucratic blanket that smothers the business community should be unraveled. Elected officials need to get off their partisan behinds and thin the field in a responsible manner. Even on a local level, regulations and bureaucratic tomfoolery hinder the entrepreneur.
If we want the situation to improve, those in power need to pave the way for creative, new ventures. We need new revenues at the state level for education, at the same time we work to trim costs in other areas. Local officials and administrators should ensure building and planning departments work to assist entrepreneurs rather than restrain them. And local government must continue to improve infrastructure to provide an attractive business environment. To create jobs. Karl Isberg