Saturday, April 01, 2017

Trickle Down?

For over 30 years the theory of trickle-down economics has held sway in some areas of US politics. It ends up with such statements as "We have to give the tax-breaks to the job creators so they create jobs." I keep thinking that there is more than a little BS in this idea.  A few of my reasons:

  • One of the Great American Capitalists, Henry Ford would disagree. 
    • Or at least his idea that he should pay his workers better so they could buy more products would say so.
  • The gap between top and bottom income in the country might disagree.
    • The gap has never been wider with a smaller "middle class" than has existed since the "middle class" became a reality. That means the ones at the top- the job creators- are not using their money to create jobs.
  • The profit statements of many corporations could disagree.
    • As profits keep going up for many big corporations, these profits are not being turned into new jobs. They are going other places, some of which are admittedly important. But the jobs are not being created.
The right-wing economists would come up with all kinds of reasoning why it hasn't happened yet.
  • Regulations
  • Uncertainty
  • Democrats
  • Obama
I would argue that if it hasn't happened yet, after 30 plus years, I see no reason why we should continue to believe that it will happen at some unforeseeable place in the uncertain future. 

And no, I am not joking. I fear that trickle-down economics is the joke.

1 comment:

Greg Chamberlin said...

What trickles down is called something else.