Bernie Sanders Obliterates The Republican Job Creator Myth At Senate Hearing

At a Senate Budget Committee hearing on President Obama’s budget proposal, ranking member Sen. Bernie Sanders (I-VT) destroyed the Republican myth of wealthy job creators who must be given tax cuts.

During his opening remarks at Senate Budget Committee’s hearing on the president’s budget proposal, Sanders said:

Mr. Chairman: This is not just a moral issue, it is an economic issue. Seventy percent of our economy is based on consumer spending, and when working people don’t earn enough income, they are not spending money. They are not buying products or services. The “job creators” in this country are not the heads of corporations. They can’t sell products and services unless people have the income to buy them. The real job creators are those millions of Americans who every day go out and purchase goods and services – and if they don’t have adequate income, the economy suffers.

This simple phenomenon, that an economy cannot do well unless there is low-unemployment and decent wages, impacts not only the lives of ordinary people, but also our deficit and national debt — and important government programs like Social Security. In other words, if we are going to reduce the deficit, we have got to make sure that every American who is willing to work hard is able to get a decent-paying job.

The debate we are having this morning will have a profound impact on the lives of the American people. The Republican philosophy of cutting Social Security, cutting Medicare, cutting Medicaid, cutting nutrition programs for hungry kids, while providing huge tax breaks for millionaires and billionaires would move this country in exactly the wrong direction.

On the other hand, if we are serious about rebuilding the disappearing middle class, reducing income and wealth inequality, and strengthening Social Security, Medicare, and Medicaid we need a budget that creates millions of jobs, raises wages, makes college more affordable, and demands that the wealthiest people in this country pay their fair share. In all of these matters, the President’s budget moves this country in the right direction.

The entire debate on budgetary and tax policy is centered around one simple question. Who does the government help? Republicans believe that the government should be helping the wealthiest Americans and corporations by cutting taxes and rolling back regulations. Republicans believe that these steps will lead to increased economic growth. Democrats and Independents like Sen. Sanders believe that government should be helping working people and those who are in the middle-class. Democrats has decades of history behind them that proves that helping working people make or save more money grows the economy.

One of the reasons why the promotion of Sen. Sanders to the highest Democratic position on the budget committee was a big deal is because the person in the top Democratic seat on the committee is talking about middle-class issues. Sen. Sanders destroyed the myth of the “job creator.” The American economy is driven by consumer spending, and the biggest consumer are people who are living week to week, buying groceries, paying rent, and putting food on the table.

In 2013, the wealthiest Americans were saving cash at a record pace. When the wealthy get a tax cut, they don’t put that money back into the economy. Unlike middle-class folks, the wealthy don’t fix their car or buy the kids some new shoes when their income tax refund is bigger. The wealthy take their tax cut money and save it, or invest it.

Sen. Sanders was correct. There is no special class of job creators. Every single American that puts money back into the U.S. economy is a “job creator.” If Republicans want to protect the job creators, they should be cutting taxes for every American in the middle-class and below.

48 Replies to “Bernie Sanders Obliterates The Republican Job Creator Myth At Senate Hearing”

  1. Sorry for the change of subject but-

    Whoopee, Obama named most admired man in the world for 7th year in a row!

  2. Somehow the GOP are not able to grasp this. When individuals have sufficient income, they spend. If they do not, they cut back, it’s that simple. Corporations lay off people when sales plunge. That’s because consumers don’t have the income to purchase the product. Raise the income, and consumers spend. Common sense should tell them this, but common sense is not required these days in the GOP.

  3. All I have to say is thank goodness Bernie Sanders is on the budget committee! We need a senator who is looking out for us and not for the corporations at our expense.

  4. The GOP conveniently overlooks the part of the Constitution that says the government should “promote the general welfare” of the country. This current flavor of GOP has lost its everlovin’ mind.

  5. Thank you Senator Sanders. I’ve been saying this for decades as has anyone who has any real understanding of basic economics. This voodoo economics phenomenom hearalded in by the Reagan administration started this country on a downward spiral and every Republican administration ever since has doubled down on it. Eventually the people will revolt as they did in the era of the rail barons.

  6. Republicans have the results of their economic policies staring them right in the face. Kansas, Wisconsin, Ohio, Louisiana.

    How can they look at these states, see the results of actually implementing the policies they espouse and say they are good for the people, for America?

    Every one of these states have cut taxes on corporations on the premise that it would create more jobs. It hasn’t. Partly because to pay for those cuts, they have had to raise taxes on the middle class, taken, or delayed, promised pensions, cut money to education and a number of other things that have hurt the poor and the middle class, but not the “job creators”.

    If it hasn’t worked on a state to state basis why would they think it will work on a national level.

  7. These lunatics are not grasping it because you’re not paying them more than their eugenics-worshipping, fascist, billionaire overlords are paying them. :(

    They’ll get it when they’re paid enough.

  8. Republicans believe that tinkle (not mine, saw elsewhere) down tax cuts create jobs. Democrats know that demand creates jobs. Who has economics to prove their position? Hint, basic econ 101 supply demand curve. and available finds to spend.

  9. I’m glad to read about Senator Sanders taking a stand against the economic myths perpetuated by the Republican Party. It is maddening to me that Republican voters can view themselves as the party of job creators but oppose policies that make those jobs livable. I have been called by friends a Disillusioned Conservative. I agree that a successful business requires investment and that capital does create jobs. But Republican voters mistake the forest for the trees when they listen to politicians who oppose social policies which require taxing the rich. I recently wrote a book that takes the reader through popular misconceptions perpetuated by the Republican Party by looking at publicly available numbers. One important myth they have is about economic policies: They are messaged as being beneficial to the middle class but are not. You can learn more at stupidpartymathvmyth dot com.

  10. Oh, the GOP grasps this. They simply do not care. They see their American Dominion in sight and that’s all that matters.

    They don’t favor the wealthy because they believe the wealthy create jobs. They favor the wealthy because they are the wealthy and they aim to win the Monopoly game they started when Reagan was elected.

    The GOP are led by former Southern Democrats. They want Dixie back and they’ll stop at nothing to get it.

  11. It’s simple. The results in those states have been favorable to them. They don’t care about the “populace”. They don’t care about the “American people”. They don’t care about “America”.

    Even simpler: the GOP won’t stop until the last dollar has floated upwards into their pockets. They believe they’ll own the US at that point. They’re mistaken.

    Every time this has happened throughout history it has led to popular uprising. Nick Hanauer was right: the pitchforks are coming.

  12. Well I would just like for you to think about what the Senate has been doing to the U.S. and to the world! Sending ALL of those countries who do NOT love US weapons, boats, vehicles that we have left for them to use, and other ammunition which they have used and abused other people with! Now that being the number One crisis and the thing is that we have not been thinking about our own people who are being used and abused by keeping them from all of the work that needs to be done in our Nation. The congress is in charge of the purse strings, of course but they are making it harder and harder for our older Americans who have retired, by giving away all of our wealth to those nations who do NOT love us! Get our own oil wells pumping lower the gas prices for all, help to lower the prices of food and things and you will find yourself on the road to prosperity!

  13. The GOP does grasp this concept. They know very well that everything Barry Sanders is saying is true. They don’t care. Nothing must interfere with the Great Republican Quest for Cheap Labor. Nothing must interfere with maximizing profits even when it can be demonstrated that everyone does better under Democratic leadership. Their contempt for working people won’t let them act rationally.

  14. As a card carrying real life socialist Bernie is unelectable in a national election. That doesn’t really matter though because he is in Vermont. We will keep sending him to Washington until he drops dead or decides to retire. Big money tried to beat him and failed miserably. He is immune to the semantics of normal politics and that is what drives conservatives crazy. He is our gift to the rest of the nation.

  15. Good terms, terrible conclusion.

    Everything leading up to the final paragraph is correct, but then you make a conclusion that isn’t warranted from the argument.

    The money that the government spends also goes right back into the economy in most cases. The actual conclusion that follows isn’t that we should be lowering taxes on the middle class — taxes are already extremely low across the board. It’s that we should be raising taxes on the richest, people that tend to hoard money, so that we can put it to good use.

    If we want all these government programs, we cannot cut taxes. We just can’t. The numbers don’t add up. We need more revenue, not less.

    I’m pretty sure Bernie Sanders agrees with me, because these government programs benefit the middle class and below, so I think the writer of the article is misunderstanding.

  16. And believe me when I tell you on behalf of the vast majority of Americans, we can’t thank you enough for giving us Senator Bernie Sanders. We NEED him in the Senate. We NEED more like him, too.

  17. I’ll put this as succinctly as possible:

    Trickle-Down Economics = Upward Wealth Redistribution….

    That is all

  18. Job Creator is a buzz word for the filty rich. These rich are hoarders, fundamentally no different different than the mentally ill who fill their homes with empty pizza boxes. Hoarding money is at its core the same as pizza boxes. The filty rich are hoarders, their lack of compassion is evidence to psychopathy.

  19. PSSSSTTT—> not everybody thinks Obama is protecting Medicare–> Bernie “…In all of these matters, the President’s budget moves this country in the right direction.” Be sure to access this link for what this latest budget does to Medicare beneficiaries–> Comment by Don McCanne

    Using the rhetoric of encouraging Medicare beneficiaries “to seek high-value health care services,” President Obama is recommending in his FY 2016 Budget the application of more consumer-directed, moral hazard suppressing, skin-in-the-game measures that shift more costs away from the government and onto Medicare beneficiaries. Although the recommended measures are not dramatic, they are steps that move away from a position of egalitarian social solidarity (a progressive view), and toward a position of encouraging greater personal responsibility for health care (a conservative view)…heres a link to an article that refers to Obamas moves–>

  20. You are partially right, that is what it says in the Pre-Amble, but in Section 8 of the constitution, The Powers to Tax, you will see that promote has been changed to “provide”

    This is for all the nay-sayers who only think they know the US Constitution.

    Section. 8.

    The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

  21. Well then, thank you Vermont for Ben and Jerry’s and Bernie. I do hope when Bernie is ready to retire you have as good a successor to follow.

  22. I detect the influence of Stephanie Kelton the person that Bernie Sanders appointed as his chief economist for the minority on the committee.

    Of course, if he were smart enough to hire her, he probably knew a lot of this stuff already.

  23. I agree with Bernie. However, what the author suggested at the end of the piece is noteworthy: Wealthy people do indeed invest that money as well as save it.

    There are philanthropists mixed in among those that put money into savings, and people investing in the stock market ARE creating jobs, people investing in companies ARE creating jobs.

    Is there an enormous problem in that they aren’t creating enough jobs vs. the wealth that many of them hold? (Think Large Corporate CEO Salaries) Definitely!

    What is a fair way to regulate this?

    We need to strike a fair balance in our economy. Part, and maybe the most essential part, of that balance needs to first come from realizing that both sides of the argument have valid points, something that our elected politicians seem unable to do. [WINK]

  24. Maybe some of them are. But if this is a genuine mental illness, then we need to figure out a sufficient and viable rehabilitation solution instead of name-calling.

  25. If you are implying that the Republicans ‘won’ anything in the recent election, recently I saw that Democrats overall received about a million and some more votes. This points to a problem with representation. On top of this, we had one of the lowest voter turnouts in our country’s history this year!

  26. Easy does it! Vermont also has Maple Syrup, Intact Ecosystems, Maple Syrup, Howard Dean shouting BYAH on youtube, Cabot Cheese AND Maple Syrup.

  27. It’s called Gerrymandering. It’s why Democratic Representatives captured FIVE MILLION more votes for the US House of Representatives in 2012 and lost seats. ITs why they logged more votes in 2014 and lost even more seats.

    Not to worry however because the 2020 census will make Gerrymandering impossible in states like Texas and the house will flip back to Democratic control in 2022.

  28. What is the name of your book? I am an American, married to an Englishman, living in Latvia.

  29. “Job creator” – In what country? We can’t assume the United States any more, which is part of the problem and unspoken issue.

  30. Congress as a whole are missing the mark. When the population is massively underemployed and underpaid, where do the governments get their tax revenue. No that the upper 1% has near destroyed the middle-class who is paying the bills? Our entire system depends on the population having sufficient spendable income to power the economy. Fecal Down Economic and the supply side theory has always be a batch of bull.

  31. Hoarders! It’s their money stupid. I guarantee you, that you paid nothing. You’re a taker not an earner. So you think Obama has the right to take personal property from people to give to whomever he pleases. [Snipped]

  32. Your solution is flawed. Everyone should pay there fair share, not get all your money back at the end of the year or money when you didn’t even work. You become a taker not a contributor and free health Care, are you nuts, if you paid some tax then were all in it together but right now you want wage earners to pay the way. I cant believe that you think you can tell people what to do with what they earn. That’s flawed my friend. Republicans are just saying get a freaking job and be responsible with it, quit making babies you have to kill. There telling Women that we know you know better just use birth control to stay away from the possibility you may become pregnant because we know that you know that fornicating is for reproduction. Both Male and Female are responsible. If the man refuses then he is not for you. It’s very simple really. Quit reading the Huffington Post or listening to MSNBC. You will start to feel better.

  33. That’s a nice little tirade of bigoted clichés right there. And, guess what? Everybody does pay taxes. Income taxes are specifically for income, and the more income you make, the more you pay. The rest are all consumption taxes, and we all pay them, even schoolkids buying lollipops.

  34. The people who create PROFITS are the poor working stiffs who CREATE products and provide services.

    The attempt to keep the wages low is an indirect attack on Social Security. By keeping wages low, the contributions to FICA will be low and when it comes time for those poor bastards to retire, their Social Security payments will be too low to support life.

    I disagree with the concept of the one percent as being “job creators.” I worked for the richest man in the world at one time and got paid well for the services I rendered. Now that I am retired, I find that I am receiving from Social Security $5,000 a year MORE than if I were working FULL TIME, making minimum wage!

    Frankly, that is disgusting. People working full time should be making MORE than I get for sitting on my rear all day long. But then again, I was fortunate enough to have the will to sacrifice the good life until I had the degrees required for me to make a good living.


  35. Hoarding pizza boxes is exactly the same disease as hoarding money. As for paying taxes, I do so hoarders like Mitt Romney can hoard things he does not need. Even Adam Smith had no respect for rich merchants and their perverse profits. You are a serf defending your lord’s collection of silver plate made off the backs of the poor.

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