Why Job Creators Is Such a Lie
We've been hearing that phrase a lot from the usual folks in the Republican party. They use it as a euphemism for the wealthiest people in the country, whom Republicans don't want to tax further, even though their current tax rate is half of what it was when I was growing up: 35% rather than 70%.
The right can't say “Don't tax the rich.” That won't play. So in a time of double-digit unemployment, someone dreamed up the term “Job creators.” The top 1% are wealthy, sure, but they're also the people who create jobs (Bill Gates, etc.), and taxing them at a higher level (at, say, 39%) will create such uncertainty that they won't expand their operations, and this will keep the economy from expanding as well. Taxing “job creators” is thus counterproductive to creating jobs.
It's a lie, of course.
The wealthiest people in this country (Bill Gates, etc.) are not job creators but profit creators. That's their job. If they have to add jobs in order to create profit, they'll do it. If they have to cut jobs in order to create profit, they'll do that, too. And if they can get you, their employee, to do more for less, they'll do that every day and twice on Sunday.
That's why the term “job creators” is such a lie. It ignores what a CEO does, what a corporation is. It ignores what capitalism is.
I've been feeling this all year. I've been waiting for someone in the mainstream media to say this all year. Nothing.
It's not the mainstream media, but recently, on his site, journalist Peter Lewis wrote about former Gannet CEO Craig Dubow, who resigned recently after six years at the helm. During his tenure, Gannett went from employing 52,000 to 32,000. Its stock went from $72 a share to $10 a share. Admittedly the last six years were particularly rough for newspapers, but—and here's the point—they weren't rough for Craig Dubow, whose salary was raised several million in 2010 to $7.9 million. Meanwhile, the pay of Bob Dickey, the head of Gannett’s U.S. newspapers division, was nearly doubled, from $1.9 million to $3.4 million, in 2010. This past summer he laid off 700 people. “While we have sought many ways to reduce costs,“ he told the workers, ”I regret to tell you that we will not be able to avoid layoffs.”
Dubow insists that his top priority as CEO was to serve the consumer: “We have always maintained an unwavering focus on the consumer,“ he wrote in his resignation letter. ”As a result, we have evolved into a digitally led media and marketing solutions company committed to delivering trusted news and information anywhere, anytime.”
Marjorie Magner, non-executive chairman of Gannett’s board of directors, echoed this thought. So did new CEO Gracia Martore.
Here's Peter Lewis:
These people are lying. The corporate goal is not to serve the consumer; it’s to maximize profits and pay packages for top executives. Can anyone argue that Gannett newspapers and journalism are better today, and that news consumers are better served?
How did Mr. Dubow and Gannett serve the consumer? They laid off journalists. They cut the pay of those who remained, while demanding that they work longer hours. They closed news bureaus. They slashed newsroom budgets. As revenue fell, and stock prices tanked, and product quality deteriorated, they rewarded themselves huge pay raises and bonuses.
Next time you hear someone use that term, feel free to punch them in the face.
One of the worst offenders.
Comment posted on Tue. Oct 25, 2011 at 10:57 AM
Comment posted on Tue. Oct 25, 2011 at 02:42 PM
Twitter: @ErikLundegaardTweets by @ErikLundegaard