Tag: entrepreneur

Job Creation – A Pliable (Fraudulent) Rhetoric in the Current Debate over Debt and Debt Ceilings

When it comes to job creation both Democrats and Republicans reflexively trot out small business as the engine of growth. These flights of breathy admiration for plucky small business owners are part of our national myth, right up there with cowboys. There probably is some truth in this myth as long as you accept the other side of the equation which includes the fact that jobs in small businesses are lower paying and less stable than those in the middle and big size companies.

But to demonstrate the extent to which today’s political environment has lost any sense of consistency, we now have the Republicans saying that any tax increases on the wealthy and corporations are “job killers”.

Since when have wealthy individuals created jobs? They don’t start new entrepreneurial ventures. They do buy extra vacation homes and fly to Vermont and Colorado and Switzerland more frequently in their private jets for skiing and apres ski fun. Much of this extravagance also occurs outside of the US. It is well known that unlike poor and middle class people, wealthy people do not spend incremental income. They save a large portion of it. Poor and middle class must spend every dollar to keep up. I defy you to find data that supports the wealthy as a source of new job creation.

As for big corporations, they are sitting on huge pools of cash and not creating jobs now. 

Companies had a record $ 1.91 trillion in cash and other liquid assets at the end of the first quarter, the report also showed, up from $ 1.86 trillion in the prior three months. Six consecutive quarters of profit growth helped fuel a 96 percent jump in the Standard & Poor’s 500 Index from its recession-low in March 2009 through March 2011.  ((http://www.businessweek.com/news/2011-06-09/household-worth-in-u-s-increases-by-943-billion-fed-says.html))

There has been consternation that though corporate profits and productivity have soared since the 2008 meltdown, corporations are not investing in the US economy. To some extent this may merely be a symptom that big corporations are not beholden to any nation state. Just because IBM has headquarters in Armonk, NY does not mean that it is primarily US-centric in its business activities and future plans. IBM’s 2010 Annual Report reported sales as follows:  Americas $42,044 billion; Europe/Middle East/Africa $31,866 billion; Asia Pacific $23,150 billion. The report further glows about the opportunities in the emerging boom economies of India and China. The US (not even reported separately, just as part of the “Americas”) is not a high growth region.

To satisfy you own curiosity about how widespread this global phenomenon is look up some recent annual reports for companies like GE, Walmart, Caterpillar, or just choose your favorite large company that has headquarters in the US.

Returning to wealthy individuals, it would not be surprising if one could look into their portfolios to discover that they reflect the same global thinking as found in the IBM example.

A final note must be made that during the 1950’s and into the 1960’s and again in the 1990’s Federal taxes on wealthy individuals and corporations were significantly higher than they are today. Yet, those periods are marked by higher than average job creation. George Bush’s huge tax give aways tot he wealthy (really a transfer of Chinese liquidity to the US wealthy through the Federal tax system) in the 2000’s coincided with the lowest job creation period in US history dating all the way back to Hervet Hoover.

Etsy.com Comes to Hudson

The rumors about etsy.com locating a new office in Hudson have been floating about for some time. Yesterday, Rob Kalin, the founder of etsy.com, placed this notice on our local business listserv.


Hi all,

Please allow me to humbly introduce myself. I know many people here already, and hope to know many more. I’m the founder & CEO of Etsy (www.etsy.com), which I started 6 years ago in my apartment in Brooklyn. My family is from New York (from Tarrytown up to Syracuse), and I’ve spent many a night in a lean-to amongst the Catskills.


Etsy currently employs 175 people, most of them in our Brooklyn office. As we continue to grow, it makes a lot of sense to me to open up an office in Hudson. I love the town, we found an incredible building (thank you Chris at the Cannonball Factory, and Theresa at Keystone for helping), and as everyone here knows — better than I do, I’m sure — there are so many great people. Denis at 711 is helping us with desks, too.

I started Etsy to create opportunities in the world — for myself, for small business owners, for people who make things, people who find things, and more. I love that we are be able to bring jobs to Hudson. Right now we’re working to get things setup. (As of this email, the building doesn’t even have heat! But that’s happening quickly.) Our plan is to start with customer support positions, and grow from there.

Etsy HQ will remain in Brooklyn, and I hope to grow our Hudson office to 50 employees or more. Jobs at Etsy come with a salary, benefits (medical, dental, vision) paid for in full by the company (including family plans). We’ll be posting actual job descriptions soon. If someone you now is interested, feel free to email me directly.

Our plan is to grow things at a measured pace, so we’re not really broadcasting anything yet. This email is probably the most public statement I’ve made so far. I’m happy to answer any q’s via email, and thanks for reading.

I hope to see you ’round,

Rob


This is great news for Hudson. How do we get the word out to more entrepreneurs in Brooklyn about the opportunities for them in Hudson?