Just because you say something over and over again, does not make it true. Political pundits have been “spinning” common terms to suit their political bias for many years. In the Bush (43)/Karl Rove era, the practice reached new heights. Reluctantly, I have to admit that the Republicans have been very effective over the past decade. Again “reluctantly” I must admit to a certain amount of admiration for how disciplined party members have been at sticking to the prescribed “talking points” and repeating them over and over.
(One example: Over 60% of voters that re-elected Bush in 2004 still believed that Saddam Hussein had direct ties to Al Queda and the 911 attacks, even though it had been widely disproved by then. Certainly carefully worded and often repeated talking points contributed to this misconception.)
This election year has produced a number of new Republican created idioms in an attempt to “spin” common terms to their political advantage. Today’s beef is the use of the term Job Creators to replace “the wealthy”. Using the term Job Creators when unemployment rates are still high during the worst recession since the Great Depression is most likely a smart move. The year 2012 will prove if it is also effective. Unfortunately, it’s just misdirection!
The truly wealthy are not the true job creators in this economy. The entrepreneurs are! That is to say, it is the small business owners just starting to grow that create the new jobs. Once they get wealthy, they make their money by using their money to make more. In the past, there was a strong argument that using their money, or “investing” it, actually did create jobs. However, over the past 15 year’s more money has been “created” on Wall Street via speculation and creative derivative products which have not produced true goods or services, and thus NOT JOBS! In other words, “investing” can create jobs, but “gambling” does not.
Employment/Labor costs are typically the highest cost in operating a business. The large corporations have trimmed down to very lean levels and out-sourced a lot of labor. They are efficient, and corporate profits are at historic highs and have been for the last few years of “recovery”. Yet, unemployment remains stubbornly high. Think about it. If CEO’s can produce a dividend and rising stock prices, they get bigger bonuses. They are not interesting in “creating jobs”. Employees cost money!
The “Bush Tax Cuts” went predominantly to the wealthy. If you don’t believe this fact, you don’t understand the difference between INCOME and WEALTH and why the capital gains rate is so critical to this entire argument. (Future postings will expand on this topic.) However, if you exclude government jobs, the number of jobs in the U.S. economy remained essentially flat during the entire Bush presidency. Where are the jobs? How can you call the wealthy job creators?
We tried that approach in earnest with the 2001 tax cuts. It didn’t work. No matter how many times you say it, you can’t replace the word wealthy, with the words “Job Creators”. It’s a myth!