Put spending money into hands of poor

Allowing the wealthy to have more money will not create jobs. Jobs don’t appear from higher profits or from larger investments; jobs are created when a company’s demand is higher than its current workforce can supply. In other words, to create jobs you need to stimulate demand. In order to do that, you need to allow more money to stay in the hands of those who don’t have the luxury of being able to save up, and are forced by basic necessity to spend every bit of their paycheck: the poor.

Allowing the wealthy to keep more money does nothing to stimulate the demand that creates jobs. What we need is more people to buy more things, and the best way to do this is to allow more money to stay in the hands of those who have no choice but to buy. That demand will allow higher profits for companies, and in turn those companies will use the profit to create more jobs to account for the higher demand.

In other words, trickle-down economics does not work. The economy didn’t fall because the wealthy were only earning six figures instead of seven, it fell because people stopping consuming. Once demand fell, companies were able to lay off their workers because they were no longer needed. Stimulate demand, and the entire process will be reversed. It won’t happen overnight, but with higher demand will come more jobs to meet that demand. Letting the wealthy keep more money will certainly make the rich richer, but it won’t do anything for the economy.

Christopher Burrell

Barrington