Ok, let's get back to the basics, because everybody looks like they lost it when they start discussing this
"rich people don't create jobs, nor do businesses, large or small."
Ok, where to start
You can have "a job" essentially in two ways:
- Being self-employed (doctor, lawyer, etc), or create your own company. This is usually the minority of people
- Having a job at a company
So, yes, companies create jobs, next
Big companies create more jobs (per 'unit'). Smaller companies create less jobs (per 'unit') but combined they make more jobs in total.
Companies create an opening because of: increased production (or more customers, in case of services), new line of business. This is ignoring regular turnaround where someone quits to go somewhere else and someone is hired to replace.
Hence, new jobs comes from:
- New products / services
- More people consuming existing products
(we could add loss of efficiency as well)
Now, bigger companies have a much easier time hiring new people. HR is set and knows the drill, they usually can accomodate new people with their existing profits (maybe not a lot, still)
Smaller companies have a much harder time hiring another people. Suppose you are a one man company, and you want to hire someone. You have to be HR (this cuts into your time). You may be not sure if adding this person is going to increase the profits enough to cover for the extra costs, etc
So when you cut taxes to all companies, sure, you're helping the big guys, but also the small guys.
The rich have an easier time dodging regulation or sending their profits to Ireland and back, but not the small guy
"And taxing the rich to make investments that grow the middle class" (from the article)
Yadda yadda yadda. You want to grow the middle class? Reduce taxing on them!
But the government won't do it, because the middle class (still) has the most money available (amount of people x taxes payed by each one) and the least resources to avoid them.
"rich people don't create jobs, nor do businesses, large or small."
Ok, where to start
You can have "a job" essentially in two ways:
- Being self-employed (doctor, lawyer, etc), or create your own company. This is usually the minority of people
- Having a job at a company
So, yes, companies create jobs, next
Big companies create more jobs (per 'unit'). Smaller companies create less jobs (per 'unit') but combined they make more jobs in total.
Companies create an opening because of: increased production (or more customers, in case of services), new line of business. This is ignoring regular turnaround where someone quits to go somewhere else and someone is hired to replace.
Hence, new jobs comes from: - New products / services
- More people consuming existing products
(we could add loss of efficiency as well)
Now, bigger companies have a much easier time hiring new people. HR is set and knows the drill, they usually can accomodate new people with their existing profits (maybe not a lot, still)
Smaller companies have a much harder time hiring another people. Suppose you are a one man company, and you want to hire someone. You have to be HR (this cuts into your time). You may be not sure if adding this person is going to increase the profits enough to cover for the extra costs, etc
So when you cut taxes to all companies, sure, you're helping the big guys, but also the small guys.
The rich have an easier time dodging regulation or sending their profits to Ireland and back, but not the small guy
"And taxing the rich to make investments that grow the middle class" (from the article)
Yadda yadda yadda. You want to grow the middle class? Reduce taxing on them!
But the government won't do it, because the middle class (still) has the most money available (amount of people x taxes payed by each one) and the least resources to avoid them.