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Ticked off: How stock market decimalization killed IPOs and ruined our economy ~ I, Cringely
I wrote several columns on job creation over the last year, columns that explained in great detail how new businesses, young businesses, and small businesses create jobs and big businesses destroy them. Big business grows by economies of scale, economies of scale are gained by increasing efficiency, and increased efficiency in big business always -- always - means creating more economic output with fewer people.

Wealth creation is just as important as job creation in our economy but too many experts get it wrong when they think wealth creation and wealth preservation are the same things, because they aren't.

Wealth creation is Steve Jobs going from being worth nothing at age 21, to $1 million at 22, $10 million at 23, $100 million at 24, to $9 billion at his death 30 years later and in the course of that career creating between Apple and Pixar 50,000 new jobs.

Wealth creation is not some third generation scion of a wealthy family turning $4.5 billion into $9 billion over the same period of time, because that transformation inevitably involves a net loss of jobs.

The fundamental error of trickle-down (Supply Side) economics is that it is dependent on rich people spending money which they structurally can't do fast enough to matter, and philosophically won't do because their role in the food chain is about growth through accumulation, not through new production.

by Bernard (bernard) on Wed Sep 5th, 2012 at 11:54:43 AM EST

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