-By Gary Krasner
It only took a couple of days for Hillary Clinton’s “people” to walk back her gaff in a speech she delivered last week while campaigning in Massachusetts with Senator Elizabeth Warren. In trying to best Warren for leftwing support, Hillary said, “Don’t let anybody tell you that corporations and businesses create jobs.” Whatever the hell she really believes on this issue, and it’s anyone’s guess what that might be, given the Clinton’s extraordinary political expediency, I feel there’s a need to educate liberals on this issue.
The reason Sen. Warren, and now Clinton, tell businesses “you didn’t build your business” is two fold.
Their reason is to get elected from resentful losers—-democrats. They covet the rich. (But they don’t hate George Clooney or Oprah’s wealth.)
But the reason Democrat voters like the message is because they dont understand or want to accept, that they don’t’ understand economics. what exactly?
The FACT that 100 percent of the revenue that builds roads and pays for fire and police services comes from businesses.
But not all kinds of business transactions. Lets review:
Real wealth is what the government needs to build roads and pay gov workers. what is real wealth? Essentially, it’s a new product or service that didn’t exist before.
A new product or service is created from ideas and work. First comes the idea, then investment, then work to manufacture the product or service.
It could be an iPhone, or harvested apples, or the work from a financial or business advisor. Whatever the public or gov’t considers having value will be purchased.
The real wealth that’s generated comes from the transaction when people purchase the product or service. They are giving their wealth in exchange for a new something of value that was created and didn’t exist before.
The profits from that is TAXED!!! That’s when real wealth is transferred to the government to pay for roads and workers.
Let me explain. When John Doe sells his used stereo on Craigs list, that’s not a wealth transfer. It’s just an even, one-to-one exchange of wealth.
Another kind of wealth transfer is when gov’t hires and pays for workers, or when gov’t pays out welfare to people. It doesn’t matter that the former is working and creating something of value. Why? Because government didn’t work for the revenue that paid for the wages and welfare. It took it through taxing the real wealth from business profits. So it’s really business profits, taken by government, that is paying the wages of gov’t workers.
So the wealth that Liz Warren believes “pays” for roads and government workers—–i.e. people being taxed—–is just a wealth transfer. We still need to identify where that wealth originated and was first created.
So, where does that REAL wealth come from? FROM BUSINESS!!! Business created the real wealth to fund government. But how?
Business creates a new thing. A thing that can be sold FOR A PROFIT (a thing Obama hates).
That profit is the real wealth that creates jobs. People earn wages from those jobs. Government taxes people on those wages earned.
But government ALSO taxes businesses again, directly, with income and real estate taxes. Just like it taxes an individual.
Ironically, Democrats complain that in Citizens United, SCOTUS turned corporations into people. Well, in fact, corporations are people. They are groups of people. And Corporations pay taxes like people. So if the very wealthy World Wildlife Fund had an exemption in McCain Feingold, allowing it to contribute to candidates, it was wrong to prevent Exxon from doing likewise. Both Exxon and WWF receive income, whether it’s from profits or donations. So Citizens United was a just decision.
But back to Dizzy Warren. What she doesn’t, or refuses, to accept is that businesses DID build their businesses, and every damn thing else you see around you. Wealth that is newly created—-that didn’t exist before—-is the wealth that expands the economy, and creates new jobs, and funds all government undertakings.