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Thread: "Rich don't create job" Nick Hanauer

  1. #21
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    Quote Originally Posted by Heyduke View Post
    Repeating myself...
    Trickle down economics creates jobs when the laws and regulations put widget factories on a level playing field with hedge funds. The fact of the matter is that (for the billionaire) the financial sector is the most attractive arena to invest in. Consequently, corporate profits in the finanical sector have increased dramatically in recent decades, to over 30% of overall US corporate profits. This is important partly because investment in the financial sector creates many fewer jobs that investment in manufacturing, or brick-and-mortar retail.

    But, Trickle-down economics also requires demand. If markets are saturated, and there's a Starbucks on every corner, why would you invest in building another Starbucks? Again, if you're a billionaire, you invest your money in the financial sector.
    I read pros and cons.

    But let's chew this in bites, shall we?

    The poor supposedly create jobs. Not by creating them, mind you, but merely buying good's made by somebody above the poor.

    So, how about the middle class? At least with them, a number, mostly ill suited to open business, do open business and some even hire workers.

    80 percent of new business fails.

    The rich have staying power. They can open business, last long enough to obtain market share and when needed, hire experts on said business.

    It would be interesting to see figures on the fail rates for the rich on start up business.

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    Quote Originally Posted by Peter1469 View Post
    If you want a new pair of shoes, of a particular brand, that isn't going to create a job. The owner of the brand will react to market pressures and create or destroy jobs.
    The market is more like a circle than an open circuit. Democrats lack fundamental comprehension of markets.

    When I opened my machine shop. I departed the construction workforce. I deprived that workforce of a worker.

    I added a worker to the machine shop workforce. I started all by myself. I worked super hard to find customers.

    I had major problems.

    First I had zero training to do machine shop work.

    It was audacious as hell for me to open a machine shop.

    Why would I be that crazy?

    I invented a unique nailing machine to nail strip hardwood floors.

    It cost a lot of my construction wages to keep paying machine shop owners.

    As the market for said machine was very limited, I believed I should buy machine shop tools and make them myself.

    I estimated my market in machines at about 1.5 million dollars in 1965. At that time, that would be a very good head start to self sufficiency.

    Alas, Government ruined my opportunity of being rich at the time.

    I had purchased a good production lathe and milling machine and other tools, but my market collapsed.

    It was the Feds changing the law that ruined my market.

    So, since Construction work had parts of the year where one might not have a job, I wanted 12 months of work.

    I elected at that fork of my life, to abandon construction to locate work for those idle machines I had purchased.

    Knocking on company doors seeking jobs was not normal for me. But I put gas in the car and drove all over hunting work. Finally it paid off. I had by that time figured out that I would not get work by telling buyers I was alone and working out of my garage. It seems it was ok for Bill Gates to work from his garage or the two Apple founders, but companies did not trust work from a home garage.

    I had to find ways to not admit I worked from home.

    When I got work, I busted my ass. I not only did it fast, but I did my best to make the work seem superior in quality.

    I learned how to finish the work with strips of a special sandpaper for metal to impart a polish. Buyers were impressed. It is sort of like you appreciate shiny shoes more than non shiny shoes.

    The shop was very under-capitalized from the opening shot. I realized more and more hard work was in store. I hired one worker. When we took the shop to a commercial building I had enough work to hire worker 2. I put Worker 1 in charge as shop foreman so I had more time to devote to seeking work and bidding jobs. That part of the job was much harder than one might think. My customers did not simply show up at the door.

    I bid one major job but bid it far too cheaply. I had no out. But we managed to build a major production line for another company and deliver it to them. Trouble was, they simply refused to pay for many months. The machine made them a lot of money. They had no problems with the machine but they were simply very slow to pay the bill.

    I was fortunate to have other customers that paid fast and that paid the payroll.

    I tell you, still I was not pulling cash out to pay my personal bills. My wife was not pleased. She enjoyed the income from construction work where I actually got paid each week.

    Anyway, this tale is too long. Still, I created the company. I hired the workers. I hustled work for the shop.

    Did the poor create jobs?

    Well, I never saw any poor person hand me cash to make payroll with.

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