Friday, May 18, 2012

Trickle Down Economics Or Trickle Down Your Pants Leg

When someone questions why I am a liberal I often respond that I'm not rich enough or stupid enough to be a conservative.

Liberal's laugh, conservatives snear.

In the 80's Reagan's chief economic advisor, David Stockman, developed the trickle down theory.  Simply it suggested that lowering taxes on wealthy individuals and companies would make them wealthier and more profitable and that benefit would trickle down to to the mid and lower income folks in America.

To support that Reagan lowered taxes several times.  Then raised them several times as well.

It didn't work. 

Think of it at home.  You get into a financial bind so you go to your boss and tell him he can keep a bigger chunk of your paycheck.  Ya, that will get you out of debt.

Eventually Stockman left saying that it was an error, that it didn't work.

The money did not trickle down, it just got deposited in the bank and stayed there.

The people that did benefit, the wealthy thought it was a big success.  They had never been wealthier, and corporate profits were awesome.

Armed with their "success" they began selling it to the middle class.  Saying that any tax increases would hurt the economy, so we have to keep those taxes lower, especially for the wealthy.  The cure for the economy is to cut services that the poor and average citizen need.

A major portion of the working class has swallowed that pill and keeps voting for the candidates that espouse it, still.

In the mean time our governments are going broke, schools are firing teachers, roads are going to hell, bridges are falling.

And people are still voting for people that want to keep taxes lower.

Hence my answer, I am not rich enough or stupid enough to vote Republican

No comments:

Post a Comment