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Thursday, May 24, 2012

Too hot for TED: The Inequality Speech



Too hot for TED?

May 19, 2012   //   by boyce   //   Articles, Media Library  //  No Comments
Something funny happened when millionaire Nick Hanauer’s was invited to give a TED talk on income inequality in America. He advocated higher taxes on the rich – including people like himself. Then the good people at TED decided his talk was too “political.” They decided not to post it. Here’s an excerpt from Hanauer’s non-talk:
We’ve had it backward for the last 30 years. Rich businesspeople like me don’t create jobs. Rather they are a consequence of an eco-systemic  feedback loop animated by middle-class consumers, and when they thrive, businesses grow and hire, and owners profit. That’s why taxing the rich to pay for investments that benefit all is a great deal for both the middle class and the rich.

 Read the full text of Hanauer’s non-talk here.

Restoration Roundtable Blog

The Inequality Speech That TED Won't Show You

May 16, 2012 | 2:26 p.m.
Friday update: Read the full profile of Nick Hanauer, and his millionaire's case for the middle class, here.

Prepare to meet Nick Hanauer. He's a venture capitalist from Seattle who was the first non-family investor in Amazon.com. Today he's a very rich man. And, somewhat jarringly, he's screaming to anyone who will listen that he, and other wealthy innovators like him, doesn't create jobs. The middle class does - and its decline threatens everyone in America, from the innovators on down.

(RELATED: Why This Speech Was Too Hot for TED)

You'll read a lot more about Hanauer in the next installation of Restoration Calls, which drops tomorrow. In the meantime, check out the full text of a speech Hanauer gave in March at the TED University conference. You can't find the talk online, because TED officials have declared it too politically controversial to post on their web site. You be the judge:


It is astounding how significantly one idea can shape a society and its policies.  Consider this one.

If taxes on the rich go up, job creation will go down.  

This idea is an article of faith for republicans and seldom challenged by democrats and has shaped much of today's economic landscape.

But sometimes the ideas that we know to be true are dead wrong. For thousands of years people were sure that earth was at the center of the universe.  It's not, and an astronomer who still believed that it was, would do some lousy astronomy.  

In the same way, a policy maker who believed that the rich and businesses are "job creators" and therefore should not be taxed, would make equally bad policy.  

I have started or helped start, dozens of businesses and initially hired lots of people. But if no one could have afforded to buy what we had to sell, my businesses would all have failed and all those jobs would have evaporated.

That's why I can say with confidence that rich people don't create jobs, nor do businesses, large or small. What does lead to more employment is a "circle of life" like feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring. In this sense, an ordinary middle-class consumer is far more of a job creator than a capitalist like me. 

So when businesspeople take credit for creating jobs, it's a little like squirrels taking credit for creating evolution. In fact, it's the other way around.

Anyone who's ever run a business knows that hiring more people is a capitalists course of last resort, something we do only when increasing customer demand requires it.  In this sense, calling ourselves job creators isn't just inaccurate, it's disingenuous.

That's why our current policies are so upside down. When you have a tax system in which most of the exemptions and the lowest rates benefit the richest, all in the name of job creation, all that happens is that the rich get richer.

Since 1980 the share of income for the richest Americans has more than tripled while effective tax rates have declined by close to 50%.  

If it were true that lower tax rates and more wealth for the wealthy  would lead to more job creation, then today we would be drowning in jobs.  And yet unemployment and under-employment is at record highs.

Another reason this idea is so wrong-headed is that there can never be enough superrich Americans to power a great economy. The annual earnings of people like me are hundreds, if not thousands, of times greater than those of the median American, but we don't buy hundreds or thousands of times more stuff. My family owns three cars, not 3,000. I buy a few pairs of pants and a few shirts a year, just like most American men. Like everyone else, we go out to eat with friends and family only occasionally.

I can't buy enough of anything to make up for the fact that millions of unemployed and underemployed Americans can't buy any new clothes or cars or enjoy any meals out. Or to make up for the decreasing consumption of the vast majority of American families that are barely squeaking by, buried by spiraling costs and trapped by stagnant or declining wages.  
Here's an incredible fact.  If the typical American family still got today the same share of income they earned in 1980, they would earn about 25% more and have an astounding $13,000 more a year. Where would the economy be if that were the case?

Significant privileges have come to capitalists like me for being perceived as "job creators" at the center of the economic universe, and the language and metaphors we use to defend the fairness of the current social and economic arrangements is telling. For instance, it is a small step from "job creator" to "The Creator". We did not accidentally choose this language. It is only honest to admit that calling oneself a "job creator" is both an assertion about how economics works and the a claim on status and privileges. 

The extraordinary differential between a 15% tax rate on capital gains, dividends, and carried interest for capitalists, and the 35% top marginal rate on work for ordinary Americans is a privilege that is hard to justify without just a touch of deification 

We've had it backward for the last 30 years. Rich businesspeople like me don't create jobs. Rather they are a consequence of an eco-systemic  feedback loop animated by middle-class consumers, and when they thrive, businesses grow and hire, and owners profit. That's why taxing the rich to pay for investments that benefit all is a great deal for both the middle class and the rich.

So here's an idea worth spreading.  

In a capitalist economy, the true job creators are consumers, the middle class.  And taxing the rich to make investments that grow the middle class, is the single smartest thing we can do for the middle class, the poor and the rich.

Thank You.

The PowerPoint Slides That Were Too Hot for TED

May 16, 2012 | 5:14 p.m.


Read the backstory here.

Too Hot for TED: Income Inequality


Jeffery A. Salter
Seattle venture capitalist named Nick Hanauer
Updated: May 22, 2012 | 4:40 p.m.
May 16, 2012 | 3:03 p.m.
If you’re plugged into the Internet, chances are you’ve seen a TED talk – the wonky, provocative web videos that have become a sort of nerd franchise. TED.com is where you go to find Facebook COO Sheryl Sandberg explaining why the world has too few female leaders, or Twitter cofounder Evan Williams sharing the secret power of listening to users to drive company improvement. The slogan of the nonprofit group behind the site is “Ideas Worth Spreading.”
There’s one idea, though, that TED’s organizers recently decided was too controversial to spread: the notion that widening income inequality is a bad thing for America, and that as a result, the rich should pay more in taxes.
(RELATED: The Speech That's Too Hot for TED)

TED organizers invited a multimillionaire Seattle venture capitalist named Nick Hanauer – the first nonfamily investor in Amazon.com – to give a speech on March 1 at their TED University conference. Inequality was the topic – specifically, Hanauer’s contention that the middle class, and not wealthy innovators like himself, are America’s true “job creators.”
(RELATED: The Slides That Are Too Hot for TED)

“We’ve had it backward for the last 30 years,” he said. “Rich businesspeople like me don’t create jobs. Rather they are a consequence of an ecosystemic feedback loop animated by middle-class consumers, and when they thrive, businesses grow and hire, and owners profit. That’s why taxing the rich to pay for investments that benefit all is a great deal for both the middle class and the rich.”

You can’t find that speech online. TED officials told Hanauer initially they were eager to distribute it. “I want to put this talk out into the world!” one of them wrote him in an e-mail in late April. But early this month they changed course, telling Hanauer that his remarks were too “political” and too controversial for posting.

Other TED talks posted online veer sharply into controversial and political territory, including NASA scientist James Hansen comparing climate change to an asteroid barreling toward Earth, and philanthropist Melinda Gates pushing for more access to contraception in the developing world.

TED curator Chris Anderson referenced the Gates talk in an e-mail to colleagues in early April, which was also sent to Hanauer, suggesting that he didn't want to release Hanauer’s talk at the same time as the one on contraception.
Hanauer’s talk “probably ranks as one of the most politically controversial talks we've ever run, and we need to be really careful when” to post it, Anderson wrote on April 6. “Next week ain't right. Confidentially, we already have Melinda Gates on contraception going out. Sorry for the mixed messages on this.”
In early May Anderson followed up with Hanauer to inform him he’d decided not to post his talk.

National Journal e-mailed Anderson to request an interview about what made a talk on inequality more politically controversial than, for example, contraception or climate change. Anderson, who is traveling abroad, responded with an e-mail statement that appeared to swipe at the popularity of Hanauer’s speech.
"Many of the talks given at the conference or at TED-U are not released,” Anderson wrote. “We only release one a day on TED.com and there's a backlog of amazing talks from all over the world. We do not comment publicly on reasons to release or not release [a] talk. It's unfair on the speakers concerned. But we have a general policy to avoid talks that are overtly partisan, and to avoid talks that have received mediocre audience ratings."

You can read the text of Hanauer’s talk here.

You can read the full story of Hanauer and his warnings about the decline of the middle class on Thursday as part of National Journal’s Restoration Calls series.
Update: 4:09 p.m.

In a May 7 email to Hanauer, forwarded to NJ, Anderson took issue with several of Hanauer's assertions in the talk, including the idea that businesspeople aren't job creators. He also made clear his aversion to the "political" nature of the talk.
"I agree with your language about ecosystems, and your dismissal of some of the mechanistic economy orthodoxy, yet many of your own statements seem to go further than those arguments justify," Anderson wrote.

"But even if the talk was rated a home run, we couldn't release it, because it would be unquestionably regarded as out and out political. We're in the middle of an election year in the US. Your argument comes down firmly on the side of one party. And you even reference that at the start of the talk. TED is nonpartisan and is fighting a constant battle with TEDx organizers to respect that principle....

"Nick, I personally share your disgust at the growth in inequality in the US, and would love to have found a way to give people a clearer mindset on the issue, without stoking a tedious partisan rehash of all the arguments we hear every day in the mainstream media.

"Alas, my judgment - and it is just a judgment, and that's why my job title is 'curator' - is that publishing your talk would not meet that goal."
Want to stay ahead of the curve? Sign up for National Journal’s AM & PM Must Reads. News and analysis to ensure you don’t miss a thing.

Tuesday, May 22, 2012

TED Explained: BS worth spreading...

AlterNet.org


ECONOMY  

It has become an exclusive, expensive elite networking experience. Strip away the hype and you're left with a reasonably good video podcast with delusions of grandeur.

 
Photo Credit: R.Iegosyn via Shutterstock.com

 
There was a bit of a scandal last week when it was reported that a TED Talk on income equality had been censored. That turned out to be not quite the entire story. Nick Hanauer, a venture capitalist with a book out on income inequality, was invited to speak at a TED function. He spoke for a few minutes, making the argument that rich people like himself are not in fact job creators and that they should be taxed at a higher rate.

The talk seemed reasonably well-received by the audience, but TED “curator” Chris Anderson told Hanauer that it would not be featured on TED’s site, in part because the audience response was mixed but also because it was too political and this was an “election year.”

Hanauer had his PR people go to the press immediately and accused TED of censorship, which is obnoxious — TED didn’t have to host his talk, obviously, and his talk was not hugely revelatory for anyone familiar with recent writings on income inequity from a variety of experts — but Anderson’s responses were still a good distillation of TED’s ideology.

In case you’re unfamiliar with TED, it is a series of short lectures on a variety of subjects that stream on the Internet, for free. That’s it, really, or at least that is all that TED is to most of the people who have even heard of it. For an elite few, though, TED is something more: a lifestyle, an ethos, a bunch of overpriced networking events featuring live entertainment from smart and occasionally famous people.

Before streaming video, TED was a conference — it is not named for a person, but stands for “technology, entertainment and design” — organized by celebrated “information architect” (fancy graphic designer) Richard Saul Wurman. Wurman sold the conference, in 2002, to a nonprofit foundation started and run by former publisher and longtime do-gooder Chris Anderson (not the Chris Anderson of Wired). Anderson grew TED from a woolly conference for rich Silicon Valley millionaire nerds to a giant global brand. It has since become a much more exclusive, expensive elite networking experience with a much more prominent public face — the little streaming videos of lectures.

It’s even franchising — “TEDx” events are licensed third-party TED-style conferences largely unaffiliated with TED proper — and while TED is run by a nonprofit, it brings in a tremendous amount of money from its members and corporate sponsorships. At this point TED is a massive, money-soaked orgy of self-congratulatory futurism, with multiple events worldwide, awards and grants to TED-certified high achievers, and a list of speakers that would cost a fortune if they didn’t agree to do it for free out of public-spiritedness.

According to a 2010 piece in Fast Company, the trade journal of the breathless bullshit industry, the people behind TED are “creating a new Harvard — the first new top-prestige education brand in more than 100 years.” Well! That’s certainly saying… something. (What it’s mostly saying is “This is a Fast Company story about some overhyped Internet thing.”)

To even attend a TED conference requires not just a donation of between $7,500 and $125,000, but also a complicated admissions process in which the TED people determine whether you’re TED material; so, as Maura Johnston says, maybe it’s got more in common with Harvard than is initially apparent.
Strip away the hype and you’re left with a reasonably good video podcast with delusions of grandeur. For most of the millions of people who watch TED videos at the office, it’s a middlebrow diversion and a source of factoids to use on your friends. Except TED thinks it’s changing the world, like if “This American Life” suddenly mistook itself for Doctors Without Borders.

The model for your standard TED talk is a late-period Malcolm Gladwell book chapter. Common tropes include:
  • Drastically oversimplified explanations of complex problems.
  • Technologically utopian solutions to said complex problems.
  • Unconventional (and unconvincing) explanations of the origins of said complex problems.
  • Staggeringly obvious observations presented as mind-blowing new insights.
What’s most important is a sort of genial feel-good sense that everything will be OK, thanks in large part to the brilliance and beneficence of TED conference attendees. (Well, that and a bit of Vegas magician-with-PowerPoint stagecraft.)
Look at Jonathan Haidt’s talk on morality and its relation to political preference, which Dave Weigel linked to as an example of a political TED talk.
It’s a very good TED talk, and a good prĂ©cis on Haidt’s interesting work. It’s also full of dubious assertions that Haidt doesn’t really have time to support with relevant arguments or data (morality is an evolutionary adaption — that is, biological?), gross flattery of the audience (“This is an amazing group of people who are doing so much, using so much of their talent, their brilliance, their energy, their money, to make the world a better place, to fight — to fight wrongs, to solve problems”), and some decidedly flaky material on the superiority of Eastern religions. (There is, at least, no techno-utopianism to be found.)
And Haidt is talking about politics, or liberalism, in the way it’s commonly defined by the sort of liberal rich people who make up the majority of the media elite and the Hollywood elite and even the (more libertarian) Silicon Valley elite: “social liberalism.” He is talking about moral issues, and while economic issues are also moral, he does not mention social justice or economic redistributionism.
Because TED is for, and by, unbelievably rich people, they tiptoe around questions of the justness of a society that rewards TED attendees so much for what usually amounts to a series of lucky breaks. Anderson says he declined to promote the Hanauer talk because it was “mediocre” (that has never once stopped TED before, but we needn’t get too deep into that), but an email from Anderson to Hanauer on the decision was more a critique of Hanauer’s thesis than a criticism of his performance. Anderson cited, specifically, his concern that “a lot of business managers and entrepreneurs would feel insulted” by the argument that multimillionaire executives hire more employees only as a “last resort.” (The entire recent history of the fixation on short-term returns, obsession with “efficiency,”  and “streamlining” of most American corporations escaped the notice of Mr. Anderson, apparently.) I can’t imagine this line-by-line response to all the points raised in a TED Talk happening for an “expert” on any subject other than the general uselessness and self-importance of self-proclaimed millionaire “job creators.”

On his blog, Anderson attempted to deflate the growing anti-TED outrage by saying that while he supported Hanauer’s “overall stance” (a claim belied by his email to Hanauer), the talk was not good enough to merit posting.
At TED we post one talk a day on our home page. We’re drawing from a pool of 250+ that we record at our own conferences each year and up to 10,000 recorded at the various TEDx events around the world, not to mention our other conference partners. Our policy is to post only talks that are truly special. And we try to steer clear of talks that are bound to descend into the same dismal partisan head-butting people can find every day elsewhere in the media.
The word “partisan” or variations on it appear three times in Anderson’s explanation. The words “Democrat” and “Republican” appear only once in Hanauer’s talk, at the very beginning.

Anderson is using “partisanship” the same way idiotic centrist pundits like Thomas Friedman do: as a meaningless catch-all term for any political action or belief that they disagree with. “Nonpartisanship” is, as always, defined as “whatever I think is reasonable and correct.” Hanauer’s argument is certainly left-leaning, but it’s not “partisan” — the Democratic Party helped usher in our new Gilded Age, and its leaders do not have an anti-income-inequality platform, even if Democrats are more likely to speak out on the subject than Republicans.
“Partisan” is the word that reveals how full of shit Anderson is, even if he doesn’t know it. This is the blinding ideology of the globe-trotting do-gooder billionaire class that mistakes its self-evident dogma for a pure lack of ideology.
The people at Davos and in Aspen also think they’re saving the world, and the majority of them are also deeply involved in making it much worse for people who can’t afford to go to Davos and Aspen. It is no wonder at all that a talk on how their voluntary charity can better the lives of the unwashed is received with much more enthusiasm than one on how a better use for their money would be for them to have much less of it and everyone else a little more.

Hanauer’s talk was remarkably dry — and I am sure that was part of the reason for its burying, because TED truly values flash and surprise over substance — and not remotely mistakable for a pro-Democratic Party stump speech. But its central message was incompatible with the TED ethos: that TED People Are Good for the World.

Alex Pareene writes about politics for Salon. Email him at apareene@salon.com and follow him on Twitter @pareene

Monday, May 21, 2012

TED Explains How Censorship Works


Go Home

Kenneth Quinnell's blog




After National Journal, Huffington Post, Crooks and Liars and others expressed outrage that TED Chair Chris Anderson refused to post a TED Talk by Nick Hanauer that questioned the idea of the wealthy as job creators, Anderson responded:
The National Journal alleged we had censored a talk because we considered the issue of inequality "too hot to handle." The story ignited a firestorm of outrage on Reddit, Huffington Post and elsewhere. We were accused of being cowards. We were in the pay of our corporate partners. We were the despicable puppets of the Republican party.
Here's what actually happened.
At TED this year, an attendee pitched a 3-minute audience talk on inequality. The talk tapped into a really important and timely issue. But it framed the issue in a way that was explicitly partisan. And it included a number of arguments that were unconvincing, even to those of us who supported his overall stance. The audience at TED who heard it live (and who are often accused of being overly enthusiastic about left-leaning ideas) gave it, on average, mediocre ratings.
At TED we post one talk a day on our home page. We're drawing from a pool of 250+ that we record at our own conferences each year and up to 10,000 recorded at the various TEDx events around the world, not to mention our other conference partners. Our policy is to post only talks that are truly special. And we try to steer clear of talks that are bound to descend into the same dismal partisan head-butting people can find every day elsewhere in the media.
We discussed internally and ultimately told the speaker we did not plan to post. He did not react well. He had hired a PR firm to promote the talk to MoveOn and others, and the PR firm warned us that unless we posted he would go to the press and accuse us of censoring him. We again declined and this time I wrote him and tried gently to explain in detail why I thought his talk was flawed.
So he forwarded portions of the private emails to a reporter and the National Journal duly bit on the story. And it was picked up by various other outlets.
And a non-story about a talk not being chosen, because we believed we had better ones, somehow got turned into a scandal about censorship. Which is like saying that if I call the New York Times and they turn down my request to publish an op-ed by me, they're censoring me.
For the record, pretty much everyone at TED, including me, worries a great deal about the issue of rising inequality. We've carried talks on it in the past, like this one from Richard Wilkinson. We'd carry more in the future if someone can find a way of framing the issue that is convincing and avoids being needlessly partisan in tone.
It's good to see Anderson address the controversy, but his explanation just doesn't seem consistent with what happened. There are just too many holes in the story. Consider ...


  • Anderson's claim that the talk was 'explicitly partisan' couldn't possibly be further from the truth. Hanauer makes one comment in the entire talk that can even remotely be connected to a political party. This is it: "This idea is an article of faith for Republicans and seldom challenged by Democrats...." That's it. That is not only not an 'explicitly partisan' statement, it's scrupulously bipartisan in its condemnation of parties. And that's the only statement Hanauer makes that is even remotely party-oriented.


  • Anderson claims that the audience gave it 'mediocre ratings.' But the end of the video shows that the crowd mostly gave Hanauer a standing ovation. And even if it he did get poor ratings from many in the audience, that should be expected, since he's explicitly criticizing both himself and the elite audience, many of whom are the supposed 'job creators' the talk discusses. Anderson didn't release any ratings, so we have to take his word for it and his other comments make that very questionable.


  • Anderson's claim that the Hanauer talk was avoided because it "descend[ed] into the same dismal partisan head-butting people can find every day elsewhere in the media," is nonsensical, since the talk does nothing even remotely related to this statement.


  • This isn't the first time that Anderson prevented a talk from being posted or publicly insulted a talk that he didn't like. A talk by Sarah Silverman, which contained offensive language and jokes, wasn't posted, despite getting a standing ovation at the conference.


  • Anderson previously stated "But I think a lot of business managers and entrepreneurs would feel insulted by that statement as given." This makes it clear that he wasn't as much concerned about the quality of Hanauer's argument as he was about how his friends would react to the talk.


  • As cited in the National Journal article: "TED officials told Hanauer initially they were eager to distribute it. 'I want to put this talk out into the world!' one of them wrote him in an e-mail in late April. But early this month they changed course, telling Hanauer that his remarks were too 'political' and too controversial for posting." The video was planned to be posted and it was Anderson who shut it down.


  • The idea that TED doesn't post controversial or political videos is also not true. "Other TED talks posted online veer sharply into controversial and political territory, including NASA scientist James Hansen comparing climate change to an asteroid barreling toward Earth, and philanthropist Melinda Gates pushing for more access to contraception in the developing world."


  • At several points in the ongoing discussion, Anderson suggests that Hanauer's talk is either based on bad logic or that its conclusions don't make sense. He doesn't offer any evidence to back up the claim, though, and a view of the talk makes it seem quite clear that the conclusions Hanauer reaches are not only pretty solid and backed by evidence, but so obvious as to border on common sense.


  • TED Silence: Ideas Worth Suppressing

    Go Home





    In the face of a constant stream of arguments from Republicans that the wealthy are job creators and thus deserve lower taxes, billionaire venture capitalist Nick Hanauer recently gave a 'TED Talk' explaining that the rich don't create jobs, but that it is instead consumers who create jobs. TED is an annual conference for elite Americans where presenters talk about various technology and other topics and the so-called 'TED Talks' are posted online, appear on YouTube and Netflix. Only in this case, the TED organizers are refusing to post Hanauer's talk, saying it is 'too controversial.' The step appears to be at odds with the way the organization has worked in the past, as it has frequently posted controversial TED Talks. It appears that TED chief Chris Anderson isn't comfortable with Hanauer's presentation, not that it is particularly controversial:
    "An ordinary consumer is more of a job creator than a capitalist." ...really? as an ex entrepreneur who agrees with your overall stance, I don't think that statement is literally true. There are numerous jobs that exist because of the imagination, energy and risk-taking of individual capitalists or entrepreneurs such as you. An typical ordinary consumer might on average contribute to the creation of one job (but probably not more than one, because the numbers don't then add up.) "hiring more people is a course of last resort, done if and only if rising consumer demand requires it". ...I launched numerous magazines for each of which, at time of their launch, there was zero consumer demand.
    In each of those cases I hired teams before launching and before knowing whether anyone would buy. Businesses do this all the time. They imagine a product, and take a risk. You might say there must have been latent demand, and that in the short time period you had, you didn't have time to fully flesh out the argument.. sure. But I think a lot of business managers and entrepreneurs would feel insulted by that statement as given.
    Anderson sounds awfully defensive and his final statement is that 'business managers and entrepreneurs' would be insulted by something that is, it seems quite obvious, is the truth seems disingenuous at best.
    An excerpt from Hanauer's presentation (see full talk above):
    I can say with confidence that rich people don't create jobs, nor do businesses, large or small. What does lead to more employment is a "circle of life" like feedback loop between customers and businesses. And only consumers can set in motion this virtuous cycle of increasing demand and hiring. In this sense, an ordinary middle-class consumer is far more of a job creator than a capitalist like me.
    So when businesspeople take credit for creating jobs, it's a little like squirrels taking credit for creating evolution. In fact, it's the other way around.
    Anyone who's ever run a business knows that hiring more people is a capitalists course of last resort, something we do only when increasing customer demand requires it. In this sense, calling ourselves job creators isn't just inaccurate, it's disingenuous.
    That's why our current policies are so upside down. When you have a tax system in which most of the exemptions and the lowest rates benefit the richest, all in the name of job creation, all that happens is that the rich get richer.