Saturday, October 25, 2014

Hillary Is Economically Illiterate

Hillary Clinton, speaking at a rally for Martha Coakley in Boston, as reported by Breitbart TV which has video with really poor sound, maybe filmed with a cell phone:
Don’t let anybody tell you it’s corporations and businesses create jobs. You know that old theory, ‘trickle-down economics.’ That has been tried, that has failed. It has failed rather spectacularly.
Corporations and businesses sure as heck create jobs, as anybody who hasn't spent her whole life working for government or Commie-front law firms would know. Trickle-down economics is a red herring.

Firms doing booming business hire people in order to do more business, make more money. The sequence: entrepreneurs have the ideas that draw in customers, more customers necessitate hiring of more employees and overtime opportunities for existing employees. Customers generate revenue.

Along the way successful firms pay dividends to stockholders who spend them. Or they increase in market value which raises stock prices, also raising stockholder wealth. Everybody benefits: customers, employees, owners, even government.

I daresay you knew all this, even though Hillary doesn't. Thanks for being patient with my Econ 1A microeconomics rant.