Friday morning the U.S. finally got a monthly jobs report that was unequivocally good: According to the BLS, 243,000 jobs were created in January, way more than expected.
Of course, this immediately led to a political fight about who or what is creating those jobs.
One of the most commonly repeated theories about job-creation is that “rich people create jobs”—specifically, rich investors and entrepreneurs who build companies that eventually employ hundreds or thousands of Americans.
This theory is often used to justify very low taxes on investors and high-income earners, under the theory that such folks have to be given an incentive to “create jobs.”
But the trouble with the theory, says Nick Hanauer, is that it’s just wrong.