It’s hard to get to the bottom of a problem when ideology and greed get in the way. Nick Hanauer gave a short presentation at TED (Technology, Entertainment, Design), a forum known for presenting speakers interested in examining and solving problems. Unfortunately, TED’s curator deemed Hanauer’s presentation too political and refused to post the “TED Talk” to their web site. After some protests, TED compromised and released the video to YouTube, till refusing to carry it on their web site.
Hanauer’s talk is far from political. Yes, he mentions Republicans and Democrats but the crux of his presentation is so simple, so uncontroversial that anyone interested in seeking the truth about our economy should view it. The notion could not be simpler. Jobs are created when successful companies need to meet the demand for their services or products. Without the demand, primarily from the middle class, the company has no success and hires no one. Therefore, corporations are not job creators. Consumers are the job creators. In fact, corporations do NOT like creating jobs. They do it only to meet demand. Further, the rich aren’t rich enough to fuel the economy alone. What is needed is government investment in the middle class and the way to pay for that is taxation of those who can afford to pay the tax.
We can argue about whether or not government responsibly handles the tax revenue they get. But we cannot argue that lowering taxes on the rich is the solution. Hanauer proves in a simple and eloquent presentation that this approach has not worked.