'No CEO Hires People Because Their Taxes Got Cut'—Ramit Sethi Says, 'Politicians Have Been Lying To You About Money For Decades'

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For decades, Americans have been told that tax cuts for the wealthy create jobs, that buying a home is always the best investment, and that anyone can get ahead simply by working harder. Personal finance expert Ramit Sethi says many of those beliefs aren't just misleading, but they can cost people serious money.

In a recent video, the bestselling author and Netflix host argued that some of the most common money lessons repeated by politicians, media figures and even families don't hold up when you look at the numbers.

"You know, and I know that politicians have been lying to you about money for decades," Sethi said. "And you are probably losing thousands of dollars because you believe these lies."

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The Money Myths Sethi Wants People To Question

One of Sethi's strongest criticisms was aimed at trickle-down economics, the idea that tax cuts for wealthy individuals and businesses eventually benefit everyone else through job creation and economic growth.

"No CEO hires people because their taxes got cut," Sethi said. "CEOs only hire people for one reason: more demand."

He also challenged the argument that higher taxes automatically drive wealthy people out of high-tax cities and states.

"The amount of men making $45,000 a year who bend over backwards to lick the boot of billionaires in my comments is truly unbelievable," he said in the video. "Many of them struggle to pay [for] gas and yet they insist, 'Don't raise taxes on billionaires. They will leave New York.'"

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However, Sethi said that even if his taxes do go marginally up, he isn't going to move away from the cities he loves. "That is exactly how wealthy people think," he added.

According to Sethi, if tax cuts alone created jobs, business owners would be constantly expanding whenever they received a tax break. Instead, he said most would simply save or invest the extra money.

"You can cut my taxes by 90%. You know what I'm going to do with that money? Save it, invest it perhaps, but not hire people," he said in the video. "That is a myth created by the ultra wealthy, so they get more and more tax cuts."

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Bigger Decisions Matter More Than Small Expenses

Sethi also revisited another topic he frequently discusses: homeownership.

While he isn't opposed to buying a house, he argues many people assume it's automatically the smartest financial move without considering mortgage interest, maintenance costs, property taxes and the opportunity cost of investing elsewhere.

"Your rent is the maximum you will pay," he said. "Your mortgage is the minimum you will pay."

See Also: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100.

Another thing Sethi also pushed back against was the idea that building wealth comes down to skipping coffee or cutting tiny expenses.

Sethi argues that building wealth comes from focusing on the "big wins," including increasing your income instead of worrying about every small expense. Many people are looking for side hustles to do exactly that.

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At its core, Sethi's message is that we're "trained to focus on $3 questions when we really should be focusing on $30,000 questions."

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Image: USA Today Network

This article 'No CEO Hires People Because Their Taxes Got Cut'—Ramit Sethi Says, 'Politicians Have Been Lying To You About Money For Decades' originally appeared on Benzinga.com

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