Noahvose: Nea'ese

Noahvose

Noahvose
Location
Wisconsin, USA
Birthday
February 21
Title
History Teacher
Bio
A Great Plains guy living in the Great Northwoods and feeling Claustrophobic.-- Masters in Anthropology (I thought we could use some Indians digging up white people).-- I have an amazing wife and two beautiful boys.-- I teach high school history and at an Alternative School for at-risk youth.-- ...and I have a serious Jelly Belly problem

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Salon.com
MARCH 14, 2009 7:31PM

MY TWO CENTS: Trickle Down Economics

Rate: 8 Flag

 

 

TwoCents

 

Let me start by saying that I am a layman. Hell, I can’t even balance my  own checkbook or pay bills on time (thanks babe!) That’s why I call this my two cents. But I’m not sure it takes a financial genius to figure out that Trickle Down Economics DOESN’T WORK (sorry Adam Smith).

 

I really don’t understand why we are still having this debate. As I see it, the general theory is to place more money into the pockets of “the owners”. With more money, they will expand their businesses and hire more people…thus the money will trickle down to the rest of us. There are three basic flaws with this theory:

 

  • Too often, with more money, “the owners” make a greater profit by cutting more corners. It is much cheaper for them to buy a computer that does the work of a person. (hence, my bank sending me a letter telling me that if I marked the box that I prefer to use a live teller, I would have to pay an additional fee)

 

  • The primary goal of corporations is to MAKE PROFIT. It is not to do what is best for the country. Does anyone else find it glaringly hypocritical that when we’re given money in the stimulus package, we are told to be patriotic and spend it, rather than saving it or paying off our debts (which is what we should do for ourselves and/or our families). When they give hundreds of billions to these banks & companies, they had no strings attached. WTF!? Where's their patriotic call to duty.

 

  • Finally, Trickle Down only works if the money can only go in two directions…up or down. In a global economy, the money can go in any number of directions (but mostly out). Therefore, corporations take the money and hire people in other countries to do the work much cheaper and then put all of their new earnings in offshore accounts, where they pay no taxes. Therefore it isn’t TRICKLE DOWN…it’s TRICKLE OUT.

 

Seriously…there are some things that are common sense people, and it’s OK not to over think it or buy into the arguments of the super wealthy anymore…we’ve already been doing it WAY too long. What are we so afraid of...it getting worse?

 

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this is more like a buck fifty... right on
The trickle down theory only proved that piss will run down your leg unless you take time to shake "it" after using it. I'm tired. you decipher the metaphor.
Thanks Y...in other words, it's worth about one pop. (yes...we say pop in the upper Midwest)

Mr. Mustard - thanks for that colorful metaphor, but you're right, that's about what the trickle down theory is worth.
Trickle down left a wet spot where my 401k used to be. And yeah, I feel F'ed - hehe ~ so rated
Peece,
David
there's no shortage of people scratching their heads. but the absolute refusal to do anything about the problems of oligarchy and corporations by the american people ensures the problems will continue.
Jimenace - sorry about your 401K. I guess we're going to go back to our social security being our children.

al loomis - I agree. If we keep buying into the scare tactics, we'll keep being frightened sheep...and broke.

Larry - I'll check out your post. Thanks for the comment.
Thanks Sao, it is hard to believe. In this latest stimulus bill debate, Repubs wanted more of the money to go toward tax breaks for the upper class...still clinging to Reagan's Trickle Down strategy. Thanks for reading and responding.
Yes, so right. They are banking on the American public's continuing stupidity.
I remember after bush's first tax giveaway to the wealthy hearing a financial radio talk show. The advisor said that the "smart money" was going overseas to Ireland which had a 9% growth rate.
When Thomas Paine returned to America after helping things along in England and France, he discovered that the propertied and monied class had already betrayed his ideals. He was shunned with only his housekeeper and his son at his funeral.
O'Steph - Thanks for the great insight. I've always said that the genius of politicians nowadays is that in the past, our Founding Fathers feared the ignorant masses, whereas now the politicians and CEOs count on them.