Quote:
Originally Posted by Nebe
It's just another way of expanding on trickle down economics, which I think we all know does not work as well as trickle up economics
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"Trickle down economics" is a term meant to debunk what is not actually trickle down. Mostly the phrase is meant to make Reagan's economic policies sound elitist, a disparaging of the poor or middle classes who must depend on the rich to "trickle down" portions of their wealth in order for the underclasses to survive. But, in reality, Reagan's lowering of taxes and loosening of regulations was not only about wealth distribution, if at all, but was meant to allow more freedom for all classes to thrive by their own initiative. It was, basically, about more personal freedom and less government. And it did work.
Here's a brief article in Forbes that talks about it:
http://www.forbes.com/sites/georgele.../#750f5471fd33
A couple of key paragraphs from the article:
"The tax cuts during the Reagan administration somewhat increased the resources of the taxpayers, while at the same time, repeal of some regulations gave them more freedom to take advantage of opportunities for gain through exchange. The result was a large increase in production and employment. Increasing wealth did not “trickle” to anyone, but the climate of freer markets enabled many Americans to earn more. Some who had previously been poor found jobs that paid well, saved money so they’d have investment capital, and then began their own businesses. Their increased incomes were a gusher, not a trickle, and it was earned."
And:
"If anything, the epithet “trickle-down” applies to the government method of taxing those who earn money so that officials can then do with that money as they please. A little of the money will be given to the poor through giveaway programs such as Food Stamps and Obamaphones, but most of it will wind up in the pockets of much wealthier, politically-connected people who know how to play the system."
"Trickle down economics" was a deceptive epithet not created by Reagan, but used by the Dems to fool the public into thinking Reagan's economic policy was pro-rich and anti-poor. The irony is that what is really "trickle down" is not the freedom that Reagan preached, but government confiscation and control. The real trickle down is from government to the people--the forced economic distribution trickling from the government to the people.
So your right. Trickle down doesn't work. But trickle down is not what the left has portrayed it to be. It is actually what leftist government does, not what the free market does.
And your also right in thinking trickle up is what works. But for it to work, we must be free enough from governmental over-taxation and over-regulation.
Actually, if we must use the world "trickle," the best would be trickle around economics.