Trickle Down Jobs

The discussions about jobs rage in the public square. The President has held meetings with the industrial leaders, bankers, his advisors, and members of Congress searching for a solution to the jobs dilemma. But the answers still elude this President.

The President and those around him hold on to the hope that the redistribution of wealth holds the key to putting America back to work, but is it? Why doesn’t it work? It has a populous attraction to those caught up on the bottom income levels. If we can just take money from the rich and distribute it to the poor, then the spending of that money by the poor will rekindle the economy. It is a bottom up theory that has been sold to this President. But will it create those jobs that are so precious to the whole country?

I will discuss disincentive a little later. But first I want you to look at what happens when the wealthy are stripped of their disposable income. Then, think about which method creates jobs and which method perpetuates social mediocrity.

It is those people with the drive and determination to be wealthy that contribute to all of our well being. How you ask? Well when the Government is not confiscating their disposable income, they spend their money on goods and services. Let’s look at a few samples.

Large Screen Flat Panel HD Televisions: The reason the rest of us can go out and buy one of these marvels of engineering without killing our budgets come from the “bleeding edge” effect. Most of you probably forget that when these marvels first hit the market, they cost $10,000 and more. It was the wealthy that bought this new technology at those ridiculous prices. It was the demand by the wealthy that funded the manufacturers and enabled them to improve their production techniques. Slowly, we saw those prices come down as it became cheaper to produce those flat screen televisions. All of us benefitted because of the wealthy. Real jobs were created for the manufacture, distribution, and sale of this new technology. The ones really responsible for the evolution were those who could pony up that money for those early flat panel TV’s. They made it possible for the rest of us.

Apartments: A lot of us live in apartments. Take a good look at them. They cost in the millions to build. They are the products of somebody wanting to make money. Yep, it is the greedy wealthy who build the places where we live. Apartment construction and upkeep provide real jobs. Adding to the benefits we receive from having somebody wanting to make money from building apartments – we get roads, sewer systems, sales of all the building materials, and last but not least, we get commercial activity from the many businesses that spring up where ever there is a bulging population. All of this activity comes from that person who sees a plot of ground and decides to develop it.

Cities: Do you like your city skyline? It too is the product of the monumental egos that want to make a statement. But egos aside for a moment, is it so hard to look at these monumental edifices and not see and comprehend the number of jobs that were created just to build those large imposing buildings. Businesses supporting the workforces that use those buildings create still more jobs. Does your job depend upon the efforts of the rich investors who say, “We want to build a large building as a monument to celebrate our success?” Most of the large buildings you see include rental spaces for other businesses. Remember, commerce begets commerce.

Fancy Boats: Ever drive around by a harbor and look at all the yachts and large pleasure craft? Building those floating pleasure palaces is a major source of employment. The wealthy among us want and buy these expensive trinkets and by doing so create good jobs for the rest of us. There are literally thousands of craftsmen involved in the building of those large pleasure craft. Then of course are the follow on businesses like building harbors for those boats which have the effect of concentrating people of wealth. That concentration of wealthy individuals in turn leads to hotels, service businesses for the boats, boat charters, and restaurants. All of which would not be there without the wealthy wanting to spend their money for pleasure boats.

In the interest of keeping this article short, I will close with the following. The people who earn the most money pay the most taxes. The top 25% income earners pay 86% of all taxes. The top 1% income bracket pays 39% of all taxes.

So the next time you enter your house or apartment, think about the entrepreneur who decided that he was going to invest money into housing. Or maybe you are a trucker who hauls goods from and to the businesses that need those deliveries for the purpose of making money. Or maybe you are the electrician wiring up one of those tall buildings or new housing additions. You might be that fast food employee serving the builders, office workers, or employees of the other businesses that have sprung up around the economical activity in your area.

Remember, it is the wealthy and those seeking wealth that make it possible for our livelihoods. When the government seeks to take from the rich and distribute their wealth to the poor, there is less money for them to operate with. They buy fewer products from that bleeding edge, build fewer buildings, buy fewer boats, and pay fewer taxes. If this is where your heart is then by all means support Barack Obama and his redistribution of wealth. But, if you value your freedom and the good things that result from those who want to make a profit, then say no to Obama’s dim vision of what makes this country great.

All of us depend upon the commerce that trickles down from the visionary few among us. The profit motive is the spur to the flanks that makes the whole economy work. What is really sad is that everybody can participate in the wealth creation of this country. Making money is not restricted to just certain people. In America, anybody with the dream and desire to achieve can accomplish their goals. But somehow that message is being lost by those who seek to kill that desire by controlling the reward side of the equation. Obama’s vision is to reap the reward while you put out the effort. But when the reward is drastically reduced (through taxation), so is that incentive for an individual to expend that necessary effort for achievement.

Cheers,

-Robert-

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