<i>In the same way that it’s a fact that the sun, not earth is the center of the solar system, it’s also a fact that the middle class, not rich business people like me are the center of America’s economy</i><p>I think the author is slightly overestimating the extent to which he understands economics. No doubt the author has some very sound data to support this thesis, although he has chosen to support it with anecdotes and incorrect economics instead.<p>For instance, he complains about the 39% top marginal rate on middle-class, ordinary Americans. Now, it is an <i>actual</i> fact that people who make this top marginal rate are not "middle class" by many common definitions. In his imaginary pro-worker universe which he incorrectly labels "Keynesian", that rate would also be a lot higher.
I agree with I think this entire post, strongly, but would still like someone to explain how it's appropriate for HN; it reads like a top-tier /r/politics post.
The point that drove it home is that businesses aren't in t business of "creating jobs." We're in it to make money. I hire when it hurts. I don't hire when I have an excess of cash.<p>If tax rates were higher I'd hire people, buy office space or equipment. Anything to keep me from having to just gift it to the idjits in Washington.
Why the middle class in particular? If our economy is based on spending, then it like giving money to anyone who will spend it is the answer. Could be poor, middle class, or rich, so long as they don't just put it into their bank account.<p>(And yes, banks could theoretically loan out the money, but currently they won't.)
Here's the TED talk ("censored" from TED) A TED Talk on Income Inequality by Nick Hanauer <a href="http://www.youtube.com/watch?v=iIhOXCgSunc" rel="nofollow">http://www.youtube.com/watch?v=iIhOXCgSunc</a>