Nick Hanauer on who actually creates jobs

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.