To understand why we are having a jobless recovery, you must understand economics. Unfortunately, most people in this country do not really understand economics. So, here’s a very brief explanation.
Our economy is consumption driven – the old supply and demand. Let’s say I own a widget factory and I make one widget a day – 5 widgets a week. I send my widgets to the marketplace and every week, I sell all of my widgets. But, one week, I notice that there are still 5 people in line wanting to buy my widgets. If I could make more widgets, I’m certain that I could sell all of them, as well.
So, I return to my factory, and hire a person to help me make widgets. I pay him an hourly wage that pretty much leaves me with most of the profit – this is MY factory and these are MY widgets and if he was bright, he could start his own widget factory. This is America after all.
Now, because there are two people building them, I can make and sell ten widgets a week. Some time goes by and word gets out that I make the best widgets. Now, I notice that there are three people standing in line when my widgets are sold out. So, instead of hiring someone new, I make my one and only employee a salary employee (which means I don’t have to pay him overtime) and I make him work longer hours to make those extra three widgets. Since I don’t have to pay him overtime, I’m still making an enormous profit.
This is how companies work. This is capitalism, admittedly, at its very basic level, but you get the idea.
If the economy falters and I stop selling 13 widgets a week, I’ll cut my employee’s job.
If I discover that I can outsource widget making to China or Taiwan, bye bye employee.
And, guess what, if the government cuts my taxes, I’m not going to use that money to build another factory (creating new jobs) or hire employees in my old one, I’m going to keep it. I deserve it. I came up with this idea for a company and I built it. And, that’s why giving tax breaks to the richest in this country, isn’t going to create jobs.
If there is not consumption on the bottom and middle rungs of our country, there is no reason for companies to hire. Cutting the taxes of the rich does not cause jobs to magically appear. It just makes the rich, richer. And, because that revenue needs to be made up in some manner, it makes the poor, poorer. Cutting things like health care for the poor to give tax breaks to the rich is absolutely the most despicable thing we could do in this country. Cutting school lunches for poor kids or the breakfasts before school, where this might be their only decent meal – and give a 10% tax break to the rich who can afford to pay their taxes under the guise that this will create jobs is irresponsible and ridiculous. But, that’s what the Republicans are selling you – a tax break for those at the top who don’t need one.
Are there people in this country that don’t pay any money in taxes? Yes, yes there are and if the Republicans have their way, more of them will be rich than poor.