Nick, And TED’s Bogus Journey

The good: Nick Hanauer gave a talk that plainly explains why the right’s “Job Creators!” doctrine is so utterly full of FAIL:

The bad: According to TED’s Chris Anderson, the vid wasn’t posted on the TED site because it is “out and out political” and “comes down firmly on the side of one party” in an election year.

Mr. Anderson, a word please?

We need to talk...

You appear to have gotten things a little confused; please allow me to clarify.

The video that you claim is “political” merely describes the relationship between consumer demand and jobs; that is, jobs are created out of an increased demand for goods or services.  Far from being political, it is a statement of fact that anyone who has ever taken an economics class could tell you unless they went to Liberty/Regent/some “for-profit” sham school.  That does NOT mean it “comes down firmly on the side of one party” – it means it comes down firmly on the side of THE TRUTH.  IF it appears TO YOU that the vid favors one party over the other, there is a reason for that.  You may find introspection helpful here.

The vid tries to combat the seemingly endless tide of utter ignorance on the subject, as expressed by comments such as this:

In a nutshell, the rich (JOB CREATORS) can still create jobs even if there is no product or customers or customer demand. because they have the capital and means to do so. They can afford to hire more people even if the business is at a loss.

Now to be fair, this is actually a nice bit of misdirection; certainly those with massive resources at their disposal could create jobs regardless of customer demand.

However, since labor is actually a cost associated with running a business, it makes little sense (and in fact, would be fairly ignorant) for a business owner to do so without any expectation of being able to make a profit from the selling of additional goods/services, since said action would result in a net decrease in profitability.

This isn’t hard to grok; your basic college-level Econ 101 course covers this sort of stuff.  You should know better.

(h/t John Cole)

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