Rich people don’t create jobs

This six-minute video from 2012 was deemed too politically controversial to post by TED. It’s refreshing to hear this from a ‘super-rich’ entrepreneur.

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3 thoughts on “Rich people don’t create jobs

    • Yes he has an interesting point of view. The entrepreneur in the video I posted is obviously not an economist, so I take his ideas as a more general argument against the narrow and rather ideological view that the rich create jobs. It is clearly more complex than that. At the moment, the idea of increasing income taxes on the very richest and using the money to fund necessary infrastructure spending seems to be a good one, but this will not always be true. If there is much less inequality (although there may be no ideal level, so this is difficult to judge) and first-class infrastructure then such a policy would not be needed. Different economic circumstances call for different policy packages.

      • Well put.

        The gentleman makes a number of excellent points in his TED presentation.

        Still, personally, I do not like his argument – I suppose, that’s because, to my taste, he relies too much on ideological stereotypes. And I won’t go into details, but let me say this: entrepreneurial and managerial capabilities are scarce and indispensable in creating viable jobs, to begin with. That certain (macro)economic conditions are also required to create, maintain or even expand employment does not conflict with this insight.

        I feel that entrepreneurial freedom and respect for the achievements of entrepreneurs and managers is vital for an economy that hopes to achieve satisfactory levels of employment.

        Perhaps the TED guy is too quick to subsume “capital” under rich (and by ideological implication: unproductive) people.

        But, of course, just as important as entrepreneurial freedom is that capital and labour are kept in political balance and that neither is allowed to become preponderant.

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