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How The "Job Creators" REALLY Spend Their Money (Demo)

On May 29, 2012, Paul Buchheit writes on CommonDreams.org:

“Does wealthy America have a point, that giving them all the money will ensure it’s disbursed properly, and that it will create jobs and stimulate small business investment while ultimately benefiting society? Big business CEOs certainly think so, claiming in a letter to Treasury Secretary Timothy Geithner that an increase in the capital gains tax would reduce investment “when we need capital formation here in America to create jobs and expand our economy.”

“They don’t cite evidence for their claims, because the evidence proves them wrong. Here are the facts:

The Very Rich Don’t Like Making Risky Investments

The Very Rich Don’t Like Taking On Risky Jobs

The Very Rich Corporations Don’t Like Spending On America

“The richest individuals and corporations are really good at building up fortunes. They’re even better at building up their “job creator” myth.”

What we need are tax and investment stimulus incentives to serve as tools to strengthen economic growth, with the requirement that productive capital ownership is broadened simultaneously. To benefit from lower or no capital gains tax the requirement must be that the investment significantly creates new private, individual owners of the new productive capital assets underlying the investment. The result will reverse the trend that further concentrates productive capital ownership among those who already own, and further creates dependency on redistribution policies and programs to sustain purchasing power on the part of the 99 percent of the population who are dependent on their labor worker earnings or welfare to sustain their livelihood. By stimulating economic growth tied to broadened productive capital ownership the benefits are two-fold: one is that over time the 99 percenters will be enabled to acquire productive capital assets that are paid for out of the future earnings (future savings) of the investments and gain greater access to job opportunities that a growth economy generates.

http://www.commondreams.org/view/2012/05/29-1

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