US middle class real ‘job creators’
Bob Bettilyon is exactly correct when he states demand creates jobs. (May 24: “Demand creates jobs, not the 1 percent”)
To build on what he said, it is middle-class disposable income that creates the demand that creates the jobs. Everyone was talking about how $5 per gallon gas was going to stall the economic recovery because it was going to reduce the amount of disposable income.
HP CEO Meg Whitman is certainly a 1 percenter, but she just announced the company is laying off 27,000 workers. Why? Because demand for its products has dropped.
See the correlation? When demand decreases, jobs are lost. Only when demand increases are jobs created.
It’s not just the 1 percenters who follow this principle. Every business operates this way.
Christmas shopping season is the perfect example of this principle. When demand surpasses workforce capacity, increase the workforce. When demand decreases because the shopping season is over, decrease the workforce.
With an economy based 66-70 percent on consumer spending, it is actually the middle class with disposable income that is the job creator. All the 1 percenters do is exploit the demand.
Instead of being called “job creators,” they should be called “demand exploiters.” It’s a much better description of what they actually do.
It’s not a bad thing. It’s very necessary and helpful to the economy. But if demand exploiters can exploit the demand without creating jobs, that’s what they will do.
Because their goal is simply to exploit the demand as cheaply as possible, not create jobs.
Russ A. Johnson