Henry Blodget is co-founder, CEO and Editor-In Chief of Business Insider, one of the fastest-growing business and tech news sites in the world. Business Insider's investors include Institutional Venture Partners, RRE Ventures, and Bezos Expeditions. The site has 25+ million visitors a month. A former top-ranked Wall Street analyst, Henry is also the host of Yahoo Daily Ticker, a digital video show viewed by several million people a month.
His recent piece on his site explains exactly why rich people don't create jobs, echoing Nick Hanauer who is mentioned in the article. Healthy economic systems nurture job growth. This photo shows just how unhealthy our economy is right now.
The bottom 90 percent (the blue color in the graph) are customers and if their wealth is stagnate, our economy doesn't work the way it should.
The company's customers buy the company's products. This, in turn, channels money to the company and allows the the company to hire employees to produce, sell, and service those products. If the company's customers and potential customers go broke, the demand for the company's products will collapse. And the company's jobs will disappear, regardless of what the entrepreneurs or investors do.
Now, again, entrepreneurs are an important part of the company-creation process. And so are investors, who risk capital in the hope of earning returns. But, ultimately, whether a new company continues growing and creates self-sustaining jobs is a function of the company's customers' ability and willingness to pay for the company's products, not the entrepreneur or the investor capital. Suggesting that "rich entrepreneurs and investors" create the jobs, therefore, Hanauer observes, is like suggesting that squirrels create evolution.
Wealthy people like Mr. Blodget are realizing that they need to actively support change otherwise there won't an economy in which they can enjoy their riches.