About giving companies tax breaks so that they’ll hire more people: A CEO generally doesn’t hire people because his company has money (whether the money comes in tax breaks, subsidies, stimulus funds or other payments). The CEO hires because demand for his company’s goods or services is so strong that the only way to meet the demand and provide the goods/services is to hire more workers. To strengthen demand, the U.S. government should stimulate the economy’s demand side — the people and organizations that would spend money if they had it — not the entities already so prosperous that they don’t need to spend the money.

This financial expert puts it even better:

http://www.addictinginfo.org/2013/05/11/banned-ted-talk-job-creator-myth/

Hanauer

Advertisements