Two hundred fifty years of history says he’s wrong but no one ever claimed Henry Blodget was smart

Blodget's walk of shame

Blodget: Steve Jobs didn’t create jobs, customers did. In Blodgett’s world, the creative force in employment is people who consume things. Steve Jobs created something that no one knew was needed – the iPad, for instance, but that produced no jobs. Only when consumers came out of the woodwork to buy what hadn’t existed before were factories manned and set to work.

And what if the iPad was not invented? What would those factories be producing for Blodget’s millions of consumers? He doesn’t say.

He does say,however, in an eerie echo of the looters in Atlas Shrugged, that inventors and entrepreneurs, useless though they be, can be taxed as heavily as the non-producers see fit because these people will keep inventing, keep being creative because – well, just because.

Blodget is creating something new here himself, a sort of ill-thought-out post-Marxism. Marx argued that it was factory workers, not capitalists, that create surplus value or, if you will, “wealth”. Blodget tosses those workers into the dustbin of history and posits that it is consumers purchasing what the factories and their workers produce that actually generate wealth. By this logic, we could confiscate every dollar earned by capitalists, inventors and assembly line workers redistribute that money to the worthless non-working surplus population and make everyone a millionaire through the increased spending of the food stamp horde. That may work for Mr. Blodget but not so well, I think, in a real world.

To his credit, Blodget did seem to attempt to prove his new theory by committing several felonies and, had he consented to go to jail, would have created jobs, and wealth, for a handful of prison guards. That he dodged that fate via plea bargain is sensible but hardly a testament to his willingness to help the poor.

The man’s an idiot, a looter and a thief, and in general, a very bad person. May he and his like keep the Devil’s minions employed for eternity.

18 Comments

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18 responses to “Two hundred fifty years of history says he’s wrong but no one ever claimed Henry Blodget was smart

  1. Demmerkrat Patriot

    But you link to his web site quite often ….
    Blodget is now the editor and CEO of The Business Insider, a business news and analysis site ….

  2. Yeah I saw this at BI, it was linked from – god save us, Businessweek.

    There’s stupid, weapons-grade stupid, and then there’s this piece. It’s actually self-refuting if you read the whole thing.

    BI just got removed from my feed list just on the off chance they ever list something that idiotic again (not that they haven’t been trying).

  3. nick

    If the entrepreneurs hadn’t created the tech hardware and software we would of been spared the junk he is spewing. He also would be deprived of the income that he claims the entrepreneurs don’t cause to be created. It is ironic that Bloomberg news is being used to distribute this type of garbage, because Bloomberg personifies what an entrepreneur can create. Not to worry Henry there will be plenty of 24/7 work in hell, which I suspect you’ll soon enough learn about first hand.

  4. greenwich dude

    “smart” people debating chicken vs egg is painful

    none of this nonsense about taxation is useful at all in light of the fact that federal spending needs to get cut by about 40%

    a) means test seniors for medicare and SS
    b) co-insurance instead of co-pay wherever possible
    c) retirement age up 3 years / 4 years
    d) some military cuts
    e) some light monetization of debt, well underway

    whoops look at me it’s sunday afternoon and all of our problems are fixed

  5. Greenwich Dude has it about right- although I’m not sure about means testing and debt monetization ( hard to keep it “light”). Blodgett is not relevant. If we can avoid conficatory taxation then Adam Smith had it right over 200 years ago- the rule of law and private propoerty rights are about all we need to get the economy humming again. The more the government gets involved beyond those things, the longer the recession will drag on

  6. anon

    You ought to Tweet this post to Mr. Blodget himself, he @hblodget. See if he responds. I’ll go out on a limb and say, um, no, but like the lottery those hedgies won, hey you never know! He might add a comment here.
    Note: Our Miss Buhl reads and follows his Tweets, she @tbuhl.

  7. Anonymous

    having had the firsthand experience of seeing some of blodgett’s business models as an industry participant when he was a sellside analyst (mind you, this was back at the top of his heyday), it is safe to say he has no f’ing idea what he’s talking about–back then and, apparently, still.

  8. Walt

    Dude –
    Tell us what you really think about Henry. I actually met him while he was at Merrill. Clearly full of himself, and I never got why people fawned over analysts. Without inside information, they know no more than anyone else. You might as well rely on a psychic. Plus they have a built in conflict of interest, which means you should always be suspect of their advice. But they make a shitload of money.
    Anyhows, regarding jobs creation. Consumers can’t buy if they don’t have disposable income. And if they do have disposable income, they won’t buy in a meaningful way if they don’t have confidence. We lack both right now.
    We do need a grass roots revolution. Our leadership, both parties, are looking after their best interests. It is pathetic. No one is looking out for OUR best interests. We now all work for the government. They no longer work for us. And businesses does create jobs. But they won’t do so in an environment of uncertainty. With a lack of leadership. Which is what we have now. It will be very hard to fix, and require a paradigm shift in how people look at things. But I do think it is coming. And it will be painful.
    Did you put your tree up yet? You don’t have a fake one, do you? Do you buy one, or just cut one down from one of your backcountry listings? You do know what a listing is? Right?
    Your Pal,
    Walt

  9. Peg

    Wow.

    Not sure what amazes me most; that someone could write a long column with so much drivel in it – or – that (my guess) someone somewhere is actually paying this fellow good money to produce garbage.

    Wonders never cease.

  10. Inagua

    To be fair to Blodgett, I think his basic point was that it is more difficult to start a new business now than previously because most people have less disposable income. Boldgett’s error is in ascribing this to the fact that “tax policy has radically shifted the percentage of the national income taken home by the 1%…[and]… has left the 99% strapped and unable to provide the demand and buying power necessary to create many jobs.” Blodgett thinks that “national income” is a pie of a pre-determined size, and that if some slices get bigger, other slices must necessarily get smaller.

    This view is necessary to the Obama re-election theme, which is that the middle class is stuck because the rich have taken too much, not because of any policy errors on Obama’s part. Obama supporters necessarily believe the Stimulus, the auto bailouts, ObamaCare, cash for clunkers, the homebuyer tax credit, the social security tax cuts, the Solyndra loan, the drilling moratorium, the blocking of the Boeing plant, the blocking of the Canadian Pipeline, Fast and Furious, and the continuation of two foreign wars while running trillion dollar deficits and increasing the debt by one-third were largely correct policy decisions which did not adversely affect the economy and/or the middle class.

    The Left has come a long way from JFK’s rising tide lifting all boats.

  11. Libertarian Advocate

    By this logic, we could confiscate every dollar earned by capitalists, inventors and assembly line workers redistribute that money to the worthless non-working surplus population and make everyone a millionaire through the increased spending of the food stamp horde.

    Blodgett’s thinking here is of course exactly in sync with all Demoncrat thinking on matters economic. Just a year ago Nancy Pelosi said ““Unemployment insurance, the economists tell us, return $2 for every $1 that is put out there for unemployment insurance,”… “It injects demand into the economy, it creates jobs to help reduce the deficit,” “history shows” tax cuts do not create jobs. “It does not create jobs. I mention this because this is the context in which we bring up this tax cut for middle-income families in America today.” Here is video of wicked witch saying it.

    Astonishing density isn’t it?

  12. Libertarian Advocate

    whooops, forgot to close my html tags

  13. Anonymous

    blodgett gets NO trim. total moron.

  14. Anonymous

    Inagua for President!

    If Walt was always this lucid, I’d add: Walt for Veep! 😆

  15. greenwich dude

    our current problems are generational – they have basically nothing to do with obama or gw bush or gh bush or reagan, although so far none of those guys have helped

    congress writes these budgets, congress panders to local interests, congress has allowed our entitlements to get out of control – executives just enable the madness a little and set tone and haven’t slapped congress around enough over the last 40 years

    but focusing on presidential politics and the current slate of complete jackasses running just distracts from the actual problems

  16. Anon – I did tweet this to my followers the second I saw it with a cc to Henry. You realize Blodget (who’ve I written for on occasion) main goal is to write controversial views to get page views and make people want to come back and comment on his site so he can re count the page views. I don’t think Henry is stupid though – just a conflicted publisher who writes interesting sentences that often don’t represent journalism but are entertaining.

    If you want valuable journalism read this today
    http://www.teribuhl.com/2011/12/09/jefferies-bond-trader-claims-mf-global-lied-to-get-bonds-issued/

  17. Anonymous

    You realize Chris Fountains’ main goal is to write controversial views to get page views and make people want to come back and comment on his site so he can re count the page views. I don’t think Chris is stupid though – just a conflicted scribe who writes interesting sentences that often don’t represent journalism but are somtimes entertaining.