Much has been said about ‘job creators’ lately, whom conservatives say we should thank and worship as saviors and custodians of the economy. I agree, except I disagree about who exactly in society actually creates jobs. Right wingers will claim that it is businesses who create jobs, but this is just a simplification of how the economy really works. Enlightened progressives look past the entrepreneur and the manager, and consider where the business got the money to pay its employees. The answer of course, is its customers, who took it upon themselves to spend their hard earned savings and credit on the goods or services offered by the business owner. For this, both the share holders and the employees should be thankful, since without the consumer, they wouldn’t have the privilege of drawing dividends or salaries.
Nobel prize winning economists, such as Dr Paul Krugman and Dr Joseph Stiglitz, agree that spending is the life blood of an economy. Furthermore, this is especially true if you have a consumer economy as opposed to a manufacturing economy, which is true of America. Economists call this life blood, ‘aggregate demand’, which is a technical term for the total amount of spending in an economy. The higher aggregate demand is, the more money businesses make, and the more people they hire and the more investments they make.
Thus, spenders are to thank for all economic growth, and for the products and services that we consume and cherish every day. Yes, that’s YOU, the consumer – you are the true job creators, the true entrepreneurs, the real backbone of the economy. So next time some smug, self-important conservative tries to tell you to thank business owners for their ‘contributions’ to society, you can educate them on how the economy truly works, and that it is you that deserves praise and thanks, not business owners who simply profit at the expense of the consumer.