Posted on 05/10/2021 7:06:53 AM PDT by SeekAndFind
There is another garbage piece by Ralph Martire on Sunday in the State Journal-Register of Illinois, titled "Trickle-down harms people, communities and the government."
Democrats' theory on what they call trickle-down economics, meaning that those in higher-risk leadership positions make more money than those in lower-responsibility positions, is that it's a problem. Their solution is socialism at its worst: for the government to continually confiscate a greater share of money for the government and then to trickle out some of the money to those the politicians and bureaucrats decide should get it. A significant amount of money is trickled to special interest groups the Democrats like.
The politicians and bureaucrats keep a significant amount for themselves, which is why many of the wealthiest counties in the U.S. are around D.C., where they produce nothing. Planned Parenthood, unions, and community groups do very well. Very little of the $1.9-trillion slush fund that was supposedly for COVID relief in the last stimulus payout was actually for COVID.
I see that the Biden administration is also giving $250 million to community groups to supposedly get people to take the vaccine. My guess is those are groups just like ACORN, which was used to get votes for Democrats on the side. The Clintons, the Bidens, and other politicians have also done extremely well while gorging at the public trough, pretending they care about us.
Martire and other Democrats say tax cuts starve the government, but the Reagan, Bush, and Trump tax cuts of the last few decades, along with the capital gains rate cuts during Clinton's term, all substantially increased tax revenues. They did not decline, as the think-tanks said they would and still pretend they did.
Here is a hint: if revenues go up, an increased deficit is caused by too much spending
(Excerpt) Read more at americanthinker.com ...
We have lost the ability to educate the left, or to even engage in any form of rational debate.
For the left it goes like this:
Trickle down is what old fat rich white men designed and want. It is just trickle on the bottom.
Capitalism has failed you. Rich people exist because they cheated you.
The country was founded by rich, racist white men who were evil, and wove their evil into the fabric of the nation.
Socialism is your only chance for justice!
When one person builds a house the economic beneficiaries extend beyond the builder, to all of his subcontractors and those supplying materials.
Those people, in turn, use their proceed to provide for their everyday life.
Those seeking to criticize capitalism (G.H.W. Bush), use the term "trickledown economics" as a pejorative to pretend that because the entire value of the house isn't distributed evenly, that it is somehow unfair, and go on to suggest that only government programs can be "fair" to all.
Always keep in mind that the gov’t produces nothing. All it can do is take resources from one use and redirect it to another use. The idea has morphed into the idea of taking from the rich and giving to the poor, to the extent where now 51% of the population are living off the other 49%. This is not tenable in the long run.
If anything, the rich should get a tax break in that they are the people who provide the funds for economic growth, without which the new crop of Participation Trophy graduates can’t move out of their parents basements. Trying to affect the distribution of income by taxing the rich is stupid. If you deem yourself poor with 5% of the economic pie, rather than taking a larger percent from the rich and risk losing their investment power, it make more sense to help them grow the size of the economic pie. After all, even if your share remains at 5%, in the presence of price stability, economic growth will see your standard of living increase.
The current thought in DC is just plain wrong.
Democrats use “Trickle Down Economics” as a derogatory term to describe capitalism when in fact it is the Democrat’s economic policy that is “Trickle Down”. Their idea is for the government to control all money and let a little bit trickle down to the people. The more one supports “The Party”, meaning totalitarian government, the more money the government trickles down to them.
Exactly. The value of the gov’t multiplier is b/(1-b) where b is the Marginal Propensity to Consume. So if people consume 90% of their income, the gov’t multiplier is 9.
What most people do not consider is that the private multiplier is always 1 larger than the public multiplier, because it is 1/(1-b). So, if you want to growth the economy and lower unemployment, lowering taxes is the more efficient way to do it.
The flaw is that tax policy is set by the very people who benefit most from giving your money away.
It is true that being CEO has risks. Being fired and taking 25 million with you sure does aliviate those risks. Can’t we at least stop giving ridiculous exit money if a CEO does a bad job?
That’s the religion. Arguing with its adherents is like trying to talk Muslims out of Islam. Better to ridicule them ruthlessly, so that those who still have functioning brains and are genuinely undecided won’t gravitate in their direction just because late-night comedians make it seem “hip” to do so.
Either Howard Hagger (the Toad), or Art Laffer.
I taught graduate/undergraduate econ course for decades and was a staunch supporter of Milton Friedman. It was a difficult time to be a conservative prof, especially since none of them were willing to engage in a debate on such topics. I ate a lot of lunches alone.
“Trickle down is what old fat rich white men designed and want. It is just trickle on the bottom.”
Actually, our Ruling Class is full of well-paid bureaucrats, NGO officers and employees with cushy jobs, and cuck businesses. Government spending disproportionately benefits Ruling Class groups and the rest of us have to wait for it to trickle down to us, if it does at all. Much of it just gets donated back to left-wing politicians to keep the gravy-train rolling.
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