Employers Debunk Republican “Job Creator” Myth
Can the myth of “certainty” be far behind?
Employers don’t create jobs, customers do. This week, business owners themselves exploded the myth that they are the job creators.
Previously we’d offered the argument that businesses don’t create jobs. “Customers are the engine of capitalism and of jobs,” we wrote. “Employees are hired when a willing buyer shows up at the door. Jobs are not created for any other reason.” Now business owners have weighed in to provide corroboration.
Reporting this week in the New York Times, Mokoto Rich interviewed Jeffery Braverman, owner of Nutsonline, in Cranford, N.J.. Even a $4,000 tax cut would not cause him to hire anyone. “You still need to have the business need to hire,” says Braverman. “Business demand is what drives hiring.”
In the same piece Michael Kehs, CEO of Chesapeake Energy, said a tax advantage “does not drive our hiring.” Jen-Hsun Huang, CEO of the high-tech company Nvidia concurred that tax breaks don’t affect his hiring decisions. Like many tech companies, he expects to increase his workforce “by twenty percent this year” based on customer demand.
When businesses are under-taxed, owners take the savings as extra profits. Under taxing doesn’t drive owners—or anyone else—to do civic good. It simply provides unearned income at another taxpayer’s expense.
Business blogger (and small business owner) Jay Goltz puts the final nail in the job-creator coffin. Noting that the people complaining about taxes are the same people who always complain about them, in good times or bad, he writes:
“Right now, my picture-frame and home-furnishing businesses employ 110 people, and they have certainly felt the effects of the recession and the housing meltdown, but if I have a problem it’s not with taxes and regulation. It is that I don’t have enough customers with money to spend. That’s why the most important aspect of the president’s plan is that it would inject $450 billion into the economy.”
Which brings us to part two of the phony right-wing jobs argument. It’s the myth that “certainty” is required for a strong business sector. Any entrepreneur will tell you that just the opposite is true.Continued on the next page