Why Aren't Ayn Rand's Wealthy "Job Creators" ... Creating Jobs?
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With the announcement last Monday of President Obama’s plan to pay for his jobs bill with, among other things, the so-called “Buffett Rule,” we’re going to be hearing a lot more about the “job creators.” Over the last year, Congressional Republicans have consistently invoked them as a hex of sorts against any proposal to raise new tax revenue. “I am not for raising taxes in a recession,” Eric Cantor declared last November, when the Bush tax cuts were a bargaining chip in the protracted budget debate, “especially when it comes to the job creators that we need so desperately to start creating jobs again.”
Ten months, no new taxes, and one debt ceiling crisis later, Cantor said the same thing last week in response to the president’s jobs bill: “I sure hope that the president is not suggesting that we pay for his proposals with a massive tax increase at the end of 2012 on job creators that we’re actually counting on to reduce unemployment.” Given that 44 percent of the nation’s unemployed have been without work for at least six months and more Americans are living below the poverty line than at any time in the last 50 years, one marvels at Cantor’s faith in the truant “job creators” as well as his forbearance in the face of human misery. To the jobless, he is counseling the patience of Job.
But who exactly are these “job creators?” The phrase is not new. Republicans have been using it for years to underscore a particular vision of capitalism in which those who have benefitted most by the system are also most essential to its continued success. As long ago as 1991, Newt Gingrich characterized Democratic opposition to a cut in the capital gains tax as evidence that liberals reject this vision. “They hate job creators,” he told a gathering of Senate Republicans, “they’re envious of job creators. They want to punish job creators.” With no apparent sense of irony, Gingrich added this was proof liberals “believe in class warfare.”
A more telling example for our current political impasse is the debate over the 1993 Clinton budget plan, which aimed to cut the deficit by, among other things, raising the top income tax rate. Congressional Republicans fought the bill tooth and nail, no one more so than former Texas Senator Phil Gramm. On the eve of its passage, he expressed the hope that the bill would “defy history” and prove that “raising taxes on job creators can promote investment and promote job creation.” Gramm, of course, did not think this was very likely to happen. “Only in Cuba and in North Korea and in Washington, D.C., does anybody believe that today,” he said, “but perhaps the whole world is wrong.”
Hindsight suggests that the world wasn’t wrong so much as Phil Gramm, along with every other Republican member of Congress. Not one of them voted for the bill, which cleared the House by only two votes and required Al Gore’s tie-breaking vote in the Senate. While higher taxes on the “job creators” proved no obvious hurdle to economic growth — the economy grew for 116 consecutive months, the most in U.S. history — it did cut the deficit from $290 billion when Clinton took office to $22 billion by 1997 and helped put the country on a projected path to paying off the national debt by 2012.
So much for ancient history. If the term “job creators” is no new addition to the lexicon of American politics, it has enjoyed quite a renaissance since President Obama took office. A Lexis-Nexis search of U.S. newspapers and wire services turns up 1,082 individual mentions of “job creators” in the month before the debt ceiling deal was reached, or just 175 fewer mentions than for George W. Bush’s entire second term.