Wednesday, March 16, 2011

Startups tend to be funded by Richer People

Lower Tax Burden for Rich

I wanted to quote the all quote article talking about the relatively low tax burden for the rich and I wanted to do that to also illustrate how right now new jobs in the U.S. will come from new start-up businesses. If I were to think about how the configuration of an average start-up would look it would look something like this:

A college graduate with a B.A, B.S. or M.A, or M.S or even PHD comes home to his or her parents and says, "I can't find a job and you spent all this money getting me this fantastic degree."
The parent having spent thousands of dollars for these (degree s) says something like, "I want you to succeed in life. However, I see there are no jobs available. Why don't I fund a business in which you can use your degrees?" The grown child with degrees says, "Okay. It's better than getting depressed or commiting suicide."

So, the grown child with one or more degrees starts a business. They don't all succeed of course but here now are the businesses that will employ all or most of the men and women who need jobs during the next 5 to 10 years. And likely there will be more and more successful businesses who will through innovation change the world in new ways. During the Great Depression there were an incredible number of successful start-ups as well. Start-ups funded by the richer parents in the U.S. will eventually hire back most of the people laid off during the last few years. So, during these times in this way lower tax rates for the rich are helping to create jobs for the rest.

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