The political knifes are drawn

[Happy Monkey]

Originally Posted by Spexxvet

I don't believe that there is a causation of higher taxes on the wealthy and high unemployment. I believe that an increased disposable income for the middle class will increase jobs. Let's say the man in the example above owned a company that makes refridgerators. Instead of giving him the $11.5k, suppose that money is distributed to 23 middle class people, each of whom needs a refridgerator. That may increase the man's business enough that he would have to hire workers to keep up with the demand for his product.

That's why it's silly to think that giving money to rich people makes jobs. To employers, jobs are expenses. They'll get by with as few as they can, no matter how good the economy is or how much cash they have on hand. The only way to get them to employ more people is to increase the money available to their customers, so a new hire is needed to handle enough business to offset the cost of their job.

That's why Ford paid his workers more than the prevailing wage - he figured he'd get his money back when they bought a car. It works on a national scale as well.