Wednesday, July 22, 2015
Capitalist apologists—particularly those aligned with the Republican Party—have long referred to the 1% as “job creators.” As this popular myth goes, the capitalists alone are responsible for investing in the economy (“taking risks”), thereby creating the jobs that provide everyone else with a living. The legislative conclusions that flow from this idea include the infamous policy of “trickle-down” or “supply side” economics, which opposes progressive taxation and shifts the burden of funding the government away from the 1% and onto the working class. They justify such policies by arguing that taxation takes money away from the private sector, which the capitalists could otherwise use to invest in the economy. This explanation contains a grain of truth, but unfortunately the outcome doesn’t jibe with the way the capitalist system actually works.