|venture capitalist explodes job creation myth....|
- Friday, May 18 2012, 16:26:19 (UTC)|
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...never heard of a conference called TED before..apparently successful business people gather to hear lectures from their own....last year some fellow (Nick something), whose name I can't remember, gave a six minute talk that was later edited out of the TED webpage...much complaining and accusations led to its finally being released...and the guy speaks simple truths and therefore brilliance in this mucky murky world of news bullshit.
He said that rich people, like himself, don't create jobs....that Trickle Down is nonsense, never worked and never COULD work...that the idea that as fewer people get even richer they will somehow stimulate growth and create jobs and therefore prosperity is a lie....what creates growth is people with good-paying jobs who therefore go out and buy...and buying is what causes demand to grow, not creating jobs....what good is it to hire a thousand people who then make a product no one can afford to buy? they won;t have their jobs long.
Even a dinosaur like Henry Ford said his cars had to be priced where his employees could afford to buy them, else where would his customers come from?
Nick also said that his wealth, and he has a lot of it, isn't going to make him spend and spend and spend. His family has three cars...he can afford to buy three thousand...but he isn't about to...he can also buy three million pairs of pants, but why? Who acts like that? But...if 50 million underemployed and unemployed could each afford a new pair of pants, that's 50 million pants sold...and THAT creates jobs jobs jobs...not his being able to buy 50 million pants by hisself.
He said that wealthy owners are determined to hire LESS people...that creating jobs is their last resort...that their profitibilty depends on keeping the number of employees low, compared to costs and therefore profits...they don;t WANT to hire more people...they would rather do with LESS...which is exactly what Industrialization was all about; replacing humans with machines for greater productivity, less costs and more profits...it was bound to happen if you kept on that path that sooner or later you would wind up with great profits, for a time, lowered costs...but, less and less customers...which in time means you loose money...which is why they're all hoarding now or playing the Wall Street Casino.
DEMAND for goods, meaning the ability to PAY for them, is what causes jobs jobs jobs....just "creating" a job doesn't solve the problem, not if people don;t have the money to buy what is being produced. The solution turns out to be MORE people being paid MORE money, who will then go out and spend it, hence creating the cycle...just making jobs won't do, unless there is good pay and enough people working to make the whole thing work.
And it CAN'T work, not in the long run, because there are limited resources and the earth can't take 10 billion more cars...more trees chopped down, more water polluted etc. This definition of "Living" is based on using up the earth's resources and it just can't be sustained. But, until we all see that, we can agree that the way to create jobs is to create DEMAND, meaning the money with which to pay for the products we work at producing....if not, people get laid off, plants close to reopen in other countries and we all slide to poverty while a very few get richer...the same amount of money is "out there", in the economy (actually more, because more and more is being printed), the problem is that it is winding up in the hands of fewer and fewer people....printing more only gives the rich the chance to play with more at the gaming tables...it doesn't "trickle down" to the rest of us.
Anyway, the not-so-secret is out...demand, the ability to BUY, is what makes for job creation....without that, you can create ten million jobs, and they'll last one pay cycle.
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