But it’s equally true that without consumers, you can’t have entrepreneurs and investors. “It is unquestionably true that without entrepreneurs and investors, you can’t have a dynamic and growing capitalist economy. This gives Apple Corporation the potential to generate a profit and leverage their business operation, expand their business, employ more workers and generate higher profits. You buy an iPhone from Apple corporation because the product will serve some role that you demand in your life. Clearly, the capitalist needs the consumer and the consumers needs the capitalist. So, the argument over “job creators” is a chicken and egg argument. Clearly, if there is no demand for the goods and services in a capitalist economy then there can be no capitalists and there can be no corporations that employ workers. Steve Jobs doesn’t exist without demand for tech gadgets. Henry Ford doesn’t exist without demand for automobiles. Importantly, the consumer and supplier are two sides of the same coin. Entrepreneurs and capitalists meet that demand by creating goods and services with the hopes of generating a profit. The relationship between the entrepreneur and the consumerĪ capitalist economy has, in the extreme aggregate, a theoretical level of infinite demand ( stay with me here). Let’s see if we can’t filter our economics through an economics filter to arrive at a logical conclusion. This is another common case of filtering economics through a political filter in order to validate a preconceived bias. The argument by Blodget and Hanauer opposes this position in an attempt to show that we should increase taxes on the rich and reduce taxes on the real job creators – the consumers. The right wing uses the “job creator” argument to push the position that increasing taxes on the rich will burden job creators and deter from future job creation. Politics always get in the way of sound thinking Unfortunately, this message gets bogged down in politics which misconstrues the facts and leads to misleading conclusions. Instead, they argue that jobs are created by consumers and demand for goods and services which enable entrepreneurs to create corporations, jobs and profits. In recent pieces on Business Insider and Bloomberg, Henry Blodget and Nick Hanauer argue that entrepreneurs and investors don’t create jobs. Who are the real job creators and what is their role in a capitalist economy? There are few debates more prominent today than the one raging over the “job creators” in the USA.