The soaring global unemployment rate has been an issue of concern not only to the citizens of the US but also the world in general. To curb the aforementioned problem, different governments as well as other institutions have adopted various economic policies aimed at creating jobs in their area of jurisdiction. The private sector too is not an exception in this process. However, the underlying issue here is what or who is responsible for job creation in the US. The elites have been cited as the main job creators in the US given their ability to not only initiate but also operate big companies that hire large number of employees (LeRoy 179).
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This notion is untrue. According to LeRoy the wealthy individuals have the capital needed to invest in such ventures and can do it with ease (179). However, it is noteworthy that the above mentioned group is motivated to venture into such businesses for their own interest and not as otherwise imagined. The Elite only invest in such businesses when there is high demand for their products and therefore maximize profits. Hightower poses that it is this demand for jobs that create employment in the US and not the elites as believed (5). The consumers of such products are directly involved in the creation of jobs in America hence their welfare should be highly prioritized instead of lowering taxation on the wealthy to create more jobs.
It is worth noting that the elites among other stakeholders are actively involved in the creation of jobs in America, the variation being the extent to which the aforementioned group does so (LeRoy 179). To begin with, the wealthy individuals have the money needed to start-up a business which would create employment opportunities for the citizens. They have the capability to invest across sectors ranging from healthcare to private education, insurance, information, and construction as well as manufacturing industries in an attempt to create more jobs. However, their ability to do so is greatly influenced by other factors namely the existing government economic policies as well as demand for jobs. First and foremost, the government plays a pivotal role in job creation through its economic policies. Stringent policies make it unfavorable for investors/elites to start up business ventures in a State. Consequently, the jobs that would have been created as a result of such initiative are lost. On the other hand, sound economic policies adopted by a State foster economic growth as many businesses are started and jobs created (LeRoy 179). This was exemplified in the State of Texas under the leadership of Rick Perry as a governor. Due to the adoption of sound economic policies, the State of Texas outperformed the nation economically by recording a full point lower unemployment rate than that of the nation.
Conversely, it is the demand for jobs in the US that create jobs and not the elites. According to Hightower the increase in the demand stimulates the wealthy individuals to invest in businesses in an attempt to maximize profits thereby ending up creating jobs for the people (5). The elites only venture into such businesses for their own interests, to make more money. The argument mostly applied by the republicans that the government needs to lower tax rates on the wealthy individuals so as to create more jobs is therefore unfounded. Instead, the government should improve the living standards of its citizens by increasing their wages and salaries. In doing so, the consumers would be more economically empowered to consume more products thereby increasing the demand for such products. Consequently, the wealthy elites are motivated to invest in the businesses in an attempt to meet the needs of the rising demand thereby creating employment opportunities. Generally, increased demand not only creates new jobs but also forms the necessity for money to invest in the infrastructure that aid the creation of new jobs.
It is vividly clear that the elites are only catalysts in the creation of jobs in US and not the main creators of jobs. They are motivated to venture into businesses jobs only when there is increased demand. However, such demand is created by the consumers (Hightower 4). If there is no demand for the products by the consumers, the elites will not invest and vice versa. Consequently, no new jobs will be created. It is therefore necessary for the government to empower consumers economically through increase of wages and salaries to spur economic growth. On the other hand, the existing economic policies adopted by the government also immensely contribute to the creation of jobs and subsequent economic growth. The government steps in when the consumers are unable to create the required demand that would force the businesses to hire. Sound and favorable government economic policies encourage investors to initiate various new businesses thereby creating new jobs for the people and vice versa. New businesses have been proven to create more new jobs compared to the old businesses.
Hightower, Jim. “America’s real job creators are broke”. New York: Nation of Change. 2011. Web.
LeRoy, Greg. The great American jobs scam: corporate tax dodging and the myth of job creation. San Francisco: Berrett-Koehler Publishers, 2005. Print.