In the widely accessible media, at least
in Lithuania, one can observe many discussions on the progressive tax
and increasing taxation of business. Quite frequently during these
discussions one can hear one very interesting argument - the rich and
business create jobs. This means that the rich and business create a
public good, thus being socially responsible. Thus demanding and
increasing social responsibility is unjust and indecent!
Nick Hanauer's talk reminds us one of the most elementary lessons from
the Economics 101 - without sufficient demand (consumers) there is no
motivation to create more supply (utility). Only if the demand is
increasing, only then the business has two choices - to increase the
production (create new jobs) or to increase the price of the utility. If
one increases supply without proper reasoning, then that one will almost
surely suffer losses.