Venture capitalist Nick Hanauer explains why people create the demand which then creates the jobs. He says he makes 1000 times more than the average worker but that doesn’t translate to 1000 times the consumerism of the average worker. He can’t makeup the difference. So with more wealth accumulating within a small pool of wealthy people, that means less wealth spread across the rest of the country. It means less purchasing power and less demand for products and services from tens and hundreds of millions of Americans. This is why supply side (trickle down) economics doesn’t work. We’ve tried it for 30 years. How many more years do we need to continue failed economic policy before we wake up and realize it will never work?
The most important takeaway from this video starts at 1:33. If income distribution had remained unchanged from a few decades ago the media family income would be $92,000. Watch the video for the rest of the statistics. It’s an extremely damning indictment of supply side economics.
And this is what these greedy fuckers who support continued supply side economics fail to realize. Their failed policies will eventually lead to a massive economic collapse when Americans no longer have any purchasing power to drive the consumerism that fuels the economy. All of the wealth of the country will be in the hands of a few thousand people. Economic activity will dry up, tens of millions (or worse) will lose their jobs and thousands upon thousands of companies will go out of business.
Or to put it another way, Nick Hanauer says, “The economics will be the least of our problems at that point.”