economics, taxation

Nick Hanauer identifies the cart and the horse…

In his video that the TED series wouldn’t air as being ‘too political’, the venture capitalist Nick Hanauer points out the fallacy in the argument that the wealthy are ‘job creators’ and that taxing them provides hurts the economy. He argues that jobs are in fact the last thing a business invests in, and it will only do so when demand in the product or service provided make it absolutely necessary. He goes on to argue that high taxes are in ultimately better for business, as they provide for a wealthier and healthier middle class, which in the long run is the consumer base most businesses require.

In short, Henry Ford was right and modern ‘capitalists’ like Grover Norquist and Mitt Romney are not. Take the five minutes and fifty seconds to watch the video. It’s worth it.