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Leftist politicians like HIllary throw this term around as though it means something in economic theory. The problem is: to economists it is a made up term with no basis in actual economic theory. Just another political buzzword that is used to denigrate those who have and make empty promises to those who do not.
In a recent article by FEE they point out:
[quote]It’s hard to pin down exactly what that term means, but it seems to be something like the following: “those free market folks believe that if you give tax cuts or subsidies to rich people, the wealth they acquire will (somehow) ‘trickle down’ to the poor.”
The problem with this term is that, as far as I know, no economist has ever used that term to describe their own views.
Critics of the market should take up the challenge of finding an economist who argues something like “giving things to group A is a good idea because they will then trickle down to group B.”
I submit they will fail in finding one because such a person does not exist. Plus, as Thomas Sowell has pointed out, the whole argument is silly: why not just give whatever the things are to group B directly and eliminate the middleman?[/quote]
Tax the rich more?
Another illusion to make the voter feel like they will be given something from government they didn’t earn and give the promising politician their vote in return. Fact is, you could tax the rich every
penny of their income and it would still hardly make a dent in the $19.5 Trillion Federal debt that is growing in leaps and bounds from interest on the debt and continual government spending.
Like it or not, it is those who earn more who ultimately hire more. Unless there are excess profits, there will not be enough to pay the workers. That is a fact of life. Unless you work for yourself, you need for your employer to be profitable. Otherwise your job goes bye bye.
Tax Refunds?
We get so-called tax refunds but in reality the government doesn’t “give” us tax refunds; it simply refrains from taking more of what we created.
We earned the money with our efforts and labor. The government takes a chunk of it and then makes you feel good by giving you some of it back. Do the math. They still got more than you think.
The real trickle down is from the income we earned with our labor to a government who wastes it on wars. Corporate subsidies and entitlements creating a permanent underclass of non-achievers who want a free ride because they are entitled to it or so they are told.
Lies for Votes
The reality is that during campaigns promises are made that are never kept. Trickle down economics is simply a made up term to be used to take advantage of the beaten down feeling we all share with a government that governs far too much. A government that controls too much. What really trickles down is tyranny not freedom.
The only thing we should want from government these days should be much less of it. The return we would get would be more freedom to live our lives as responsible adults in place of children fawning over their deceptive slave masters.
Don’t expect that outcome from a Hillary who wrote “It Takes a Village” a tome on how we need more government not less.
Trump? Your guess is as good as mine, but with the Federal Reserve still intact and in control (If you can call a economy on debt fumes teetering towards collapse control that is.) we need change of a radical kind. The lesser of two evils is the best we can do in this election. Either way, I wouldn’t get too enthusiastic. Better you prepare for the worst and continue to do your best for your future and not counting on a failing government for anything. You will end up disappointed otherwise. That I know.