Trickle Down Economics
By DivainDemand on October 14, 2011
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Either they don't know, don't show, or don't care about what's going on in the hood. ~ Boyz N The Hood
The first president I was aware of was Ronald Reagan. Therefore he was the first president I remember launching trickle down economics.
"Trickle-down economics" and "the trickle-down theory" are terms that refer to the policy of providing across the board tax cuts or benefits to businesses and the wealthy, such as tax breaks, in the belief that this will indirectly benefit the broad population. The term has been attributed to humorist Will Rogers, who said during the Great Depression that "money was all appropriated for the top in hopes that it would trickle down to the needy."
Proponents of these policies claim that if the top income earners invest more into the business infrastructure and equity markets, it will in turn lead to more goods at lower prices, and create more jobs for middle and lower class individuals. Proponents argue that economic growth flows down from the top to the bottom, indirectly benefiting those who do not directly benefit from the policy changes. However, others have argued that "trickle-down" policies generally do not work, and that the trickle-down effect may be very slim, if indeed it even exists at all.
Today, "trickle-down economics" is most closely identified with the economic policies known as Reaganomics or supply-side economics.
So let's unpack that theory further. I have blogger friends who fully support the trickle down theory and upholding tax cuts for their wealth level and businesses. One gave an example of a well off client retaining her company for work and because of the tax cuts they able to get grandiose work done to their house and hire additional people...trickling down. That example is fabulous if that's how it really worked. But with the amount of manufacturing outsourcing increasing to record numbers, the only people benefitting from tax cuts for wealthy are the actual wealthy.
People on the right (and down the middle) argue that unemployment benefits make people lazy and that they shouldn't be paid for doing nothing.
Let me make 3 points very clear to you.
1) You are only eligible for unemployment benefits IF YOU HAVE WORKED!
2) Having held a job since the time that I was 16 years old, every single dime I received while unemployed was money that I paid IN over the years. What makes you think that I'm somehow taking money from you but getting a PIECE of my own money that I've paid in. READ, RESEARCH, KNOW what you're talking about before you spout off.
3) That money goes back into the economy in the form of groceries, rent, utlities, clothes and shoes, etc...contrary to a tax cut given to a big box store CEO who pockets the proceeds and outsources manufacturing (cough cough Wal-mart cough cough) instead of hiring more employees locally.
It's simple...greed keeps the trickle down theory from being effective and as an average every day person (which you most likely are if you visit here often), although you may consider yourself in the same category as the Waltons or the Trumps or the Kennedys for that matter, you are just like me and I will never understand why you support your Congressperson (who has received large campaign contributions to vote in favor of what benefits corporations) when it is against YOUR best interest!
Am I speaking too urban for you? You live in middle America on your farm and want your country back? Call your state capital and find out how much Monsanto has donated to your Congressperson and then check their voting record when it comes to farm subsidies and then ask yourself how you'll feed your family when you can't sell your corn because it is not Monsanto approved seed. Oh but you're a business owner so you'll get a tax cut. It won't be enough to fight the lawsuit Monsanto files against you to shut down your farm.
When that happens....call your Congressperson and see which category you fall into then.
Oh and the self employed don't get unemployment benefits either because you haven't paid into the fund.
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