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The ‘have-nots’ exert big impact on the economy

Published: Saturday, July 5, 2014 1:15 a.m. CST

In reply to two letters criticizing my letter asserting the “have-nots” are the real job creators, your letters reflect an ignorance of basic economics. I never said anything bad about the wealthy, just about the obscene concentration of wealth that is killing our consumer economy.

The only way jobs are created is by demand for goods and services. No demand means no jobs. If wealth created jobs, the recent concentration of wealth would have us awash in jobs.

In reality, it decimated demand for goods and services, since the have-not consumers had their means to consume greatly diminished.

If there is no demand, the wealthy will not expand or begin businesses. The extremely small number of wealthy people can’t generate the demand needed for a consumer society.

The wealthy can consume only so much food, own so many homes and cars, and use so much bathroom tissue. Hence, they hoard most of their excess income beyond their needs.

It is the demand produced by the tens of millions of have-not consumers, who spend most every dollar they earn, that creates jobs in a consumer society. Take money out of their pocketbooks and demand decreases, resulting in lost jobs.

Furthermore, most workers in America are not employed by the wealthy. Most workers are employed by mom-and-pop businesses, owners who are far from wealthy.

Regarding new businesses being begun, the vast majority are by have-nots, not the wealthy. Most wealthy individuals began their business as have-nots, with a talent and a brilliant idea; i.e., Rockefeller, Ford, Walton, Gates. Do we attribute those jobs to the wealthy, or the have-nots?

Undeniably, the have-nots create most jobs by their demand for goods and services, their starting stunningly successful businesses, and their ownership of humble businesses that employ the vast majority of workers.

 

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