of their other speeches of their conferences. and under pressure today, the t.e.d. organization finally released that video. here s nick hanauer, venture capitalist who became the first non-family investor in amazon.com. i can say with confidence that rich people don t create jobs. nor do businesses large or small. jobs are a consequence of a circle of life like feedback loop between customers and businesses. and only consumers can set in motion this virtuous cycle of increasing demand and hiring. in a sense, an ordinary consumer is more of a job creator than a capitalist like me. that s why when business people take credit for creating jobs, it s a bit like squirrels taking credit for creating evolution. it s actually the other way around. joining me now for an exclusive interview is nick
hanauer, author of the gardens nick, your message is a very simple one. it s taught somewhere around the first week or so of any kind of economics course. which is that consumer demand rules everything. and it s something that henry ford knew. he knew when he was making when he was mass producing cars that the workers in his factory had to be able to afford to buy them to generate and keep that demand going. correct. correct. only consumer demand can animate hiring. although it s not quite true that economics textbooks reflect that idea because that idea is what s necessary in order to reach that conclusion is to understand that the economy is an ecosystem and subject to the same kinds of feedback loops that natural ecosystems are. once you understand that, it becomes transparentally obvious that this trickle down orthodox
is a complete and bogus lie. and that the true job creation lies in animating consumer demand and the feedback loop that comes from it. i want to show one more piece of your speech. for two reasons. one, because it s been suppressed and we re exciting we have it. and the other, it beautifully puts this notion about consumer demand and how the rich absolutely cannot generate enough consumer demand. let s listen to that. sure. there can never be enough super rich people to power a great economy. somebody like me makes hundreds or thousands time z as much as the median american but i don t buy hundreds or thousands of times as much stuff. my family owns three cars. not 3,000. i can t buy enough of anything to make up for the fact that millions of unemployed and underemployed americans can t by any new cars, clothes, or enjoy meals out.
which is that consumer demand rules everything. and it s something that henry ford knew. he knew when he was making when he was mass producing cars that the workers in his factory had to be able to afford to buy them to generate and keep that demand going. correct. correct. only consumer demand can animate hiring. although it s not quite true that economics textbooks reflect that idea because that idea is what s necessary in order to reach that conclusion is to understand that the economy is an ecosystem and subject to the same kinds of feedback loops that natural ecosystems are. once you understand that, it becomes transparently obvious that this trickle down orthodox is a complete and bogus lie. and that the true job creation lies in animating consumer demand and the feedback loop that comes from it. i want to show one more piece of your speech.
food has always been a gift for us and something we appreciated but never had to think about in terms of budgeting. yeah. you had to go into the market place as it were, struggling to put something on the table and try to make it stretch. i mean, did you find by day three that you were coming up with different stretching the dollar strategies? well, i think stretching the dollar is the key to this in understanding that if you can, shopping at more than one store was the key to understanding it and getting through with it. they have to manipulate their own supply and demand. only out for the good deals when moving quickly. we were lucky enough to go to four different stores. i know there are food deserts or places that are difficult to find food which would make that is lot more difficult to achieve. but at that point you have to give it over to allowing the