Submitted by Mary
Nick Hanauer, who sold his company for billion, agrees the rich don’t create jobs.
The most important reason the theory that “rich people create the jobs” is absurd, argues…Hanauer, the founder of online advertising company aQuantive, which Microsoft bought for $6.4 billion, is that rich people do not create jobs, even if they found and build companies that eventually employ thousands of people.
What creates the jobs, Hanauer astutely observes, is the company’s customers.
The company’s customers create demand for the company’s products, which, in turn, creates the need for the employees to produce, sell, and service those products. If those customers go broke, the demand for the company’s products will collapse. And the jobs will disappear, regardless of what the entrepreneur does.
