Who creates jobs?

you really want to see a wealth creator, just look at the grocer, the nurse, the software developer, the accountant, and the civil engineer. They are all creators of wealth. Chances are, you are a wealth creator.

And remember, creating goods and services is just half the story in producing wealth. Right now, businesses are far less worried about a lack of cash than a lack of confidence that consumer demand will pick up in the future. Unless there is consumer demand, there is no production and no wealth at all. No one is going to make a new MP3 player unless people want to buy it and have the money to make purchases. In this sense, consumers are job creators, too.

As Nick Hanauer, founder of Second Avenue Partners, recently told Bloomberg:

“I can say with confidence that rich people don’t create jobs, nor do businesses, large or small. What does lead to more employment is the feedback loop between customers and businesses. And only consumers can set in motion a virtuous cycle that allows companies to survive and thrive and business owners to hire. An ordinary middle-class consumer is far more of a job creator than I ever have been or ever will be.”

In other words, job creation is related to demand. When regular people have spending power, they demand products and services, which leads to more jobs for others to make the things they want.