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?