Rhode Island is quickly becoming ground zero for proof positive that the job creator logic of codling the affluent as a way of growing the economy doesn’t work. We’ve seen unemployment skyrocket as income taxes plummeted for the richest residents in the state, and now we see that guaranteeing a $75 million loan for an already uber-wealthy individual doesn’t necessarily work either.
But don’t take my word for it, watch this video that explains how the real job creators are the middle class:
Businesses (not even necessarily rich people in general) create jobs when it will help them make more money … not when they have extra money. Most smart people spend their money because it is in their best interest to do so, not simply because they happen to have more of it in their pockets.
Businesses will create more jobs when consumers want or have the ability to consume more of their goods and services. Simply giving the affluent more money, either in guaranteed loans or tax breaks, doesn’t seem to be working for Rhode Island. Hopefully, our elected leaders will realize this before things get any worse here.
I can see why TED decided not to publish this speech.