Job creators, They’re not who you might think
Job creators. They’re not who you might think. This has always been a fallacy propagated by the dismally under-educated M.B.A. classes and their corporate masters. It’s not a judgment and my intention is not to draw lines in the sand in an ‘us or them’ struggle.
My point here, as always, is to bring some common sense to the debate. I’m not interested in being accused of starting ‘class warfare’ or any of that distracting dribble that people will say is my motivation.
No one is an island and that certainly applies to the financial application of production. You know, capitalists. But they miss the point on so many levels that it’s downright mind blowing. There are many misconceptions that the capitalist accepts as Gospel that are just plain wrong, I could go on for months. This is about job creators and I will remain focused here.
A long time ago a guy that had thousands of really crummy jobs that nobody was loyal to decided to do a very novel thing. He decided to pay his workers well enough to own his products. The next fifty or so years we created the largest and most stable middle class ever seen in history. It was dynamic.
I always point to history because this is not theoretical economics. We have a history. We have seen what works. There is a track record. The numbers are in. Economic forecasting is a matter of making assumptions and applying them to really big numbers. As much as I understand the exercise I am always disappointed that often the same tired old assumptions are trotted out for strictly ideological reasons. These things have never been true and have never worked. We could make a list of these dogmas but again, I am going to remain focused on the term ‘job creators’ and their true identity.
Consumers are the only ‘job creators’ and there no evidence what-so-ever that this is not the case. I don’t care how much you jump up and down about how some capitalist financiers are creating some jobs, that’s not how it starts or grows. An entrepreneur never created a market for the next big thing. It’ like Sir Isaac Newton did not invent gravity, he discovered it and a way to explain it.
If there are no potential consumers there is no potential market. If there is no demand there is no growth. Argue against that with the rest of the “howl at the moon stupid people”.
So we get into the problem of what is currently defined as the ‘job creators’. Financiers, capitalists and entrepreneurs. Their track record of creating jobs is wholly and completely a record of dismal failure. Even the term they use (IE: job creators) is so far removed from reality as to become a punch-line for a bad comedy act. It is not, never has been, their function to create one single job. They fill positions needed to meet demand. The strategy is always the same. It is one of containing cost and employing people in an effort to leverage greater value from their employment than the cost of their employment.
I’m not saying that this will ever end or that it should. I’m saying that this is not how you create jobs. Consumers of anything and everything are the ones that create jobs. It’s a matter of self-interest. The aforementioned power players only take advantage of that concept for consolidation and control of markets.
The bottom line is easy to get to. A strong and secure middle class are the job creators. As the consolidation and control and the leveraging of effort increases the middle class loses security and strength. Profits per unit of effort may actually go up yet the consumer base actually contracts. Each and every time. Without exception.
So, when I see the enthusiasm for newly minted millionaires and billionaires rise I lament the painfully obvious. Less consumption, shrinking markets and declining middle classes. Fewer people making more money from less. More people that can’t. A decline in strength and security. Sure we created millionaires but, at what cost.
Well, I’ve bad news for those that don’t understand the value of the consumer/producer/employee classes. With the decine of the power and size of the middle class comes the eventual and unstoppable decline and collapse of the financial markets, capitalist system and entrepreneurial motivation. People will have nowhere to turn except to spirituality. Happiness will be defined by a totalitarian dogma and everyone will accept their spot in society as inevitable. None for me, thank you.
I will continue to rail against the guy that has become a success from the efforts of others with an attitude that accomodates the doctrine of ‘lowest common denominator’ employment. His is a financial doctrine tha can be attractive on paper only if a lot of the paper can be ignored. More profit as a singular goal, while attainable, is often self defeating. The idea that moving the greater share of those profits to the higher levels of our societies pyramid is demonstrably dangerous and actively happening.
And we have been there before. We have a history. Forget their Gospel. Learn the Truth.