Monday, February 16, 2015

Trickle Down is a Joke


Why trickle down economics is pure crap

The Reagan era theory of trickle down economics is pure crap and has never worked that I know of.

The theory is that if you give more money to leaders of corporations and other wealthy people that they will use it to create jobs and grow the economy.  Sounds like a good theory, but, sorry folks, it just does not work.

Here in its simplest terms is why it does not work.  Let’s say you have 2 dogs of varying sizes.  You only have one big dog biscuit to be shared by the two dogs.  You have two different options you can do with the bone.  Option one is to break the bone in half and give each dog a piece of the bone.  Option two is to give the bone to the biggest dog and expect him to share it with the smaller dog.  

Do you think the big dog will share the bone?  I don’t think so.  Option two is trickle down economics.  The rich are not going to share the bones of society because they want it all.

What does work.

What does work in the economy to make it grow is people buying more goods and services.  As people buy more stuff the manufacturers make more stuff to meet the demand and along the way may need to hire more workers to do so.  However, what has happened is the Republican Party keeps giving more and more of the money to the rich bone hawgers and less and less to the people who buy stuff, create demand, and create jobs.

Real Stupidity

Now another part of this whole thing is that the greedy bone hawgers are so stupid they are screwing themselves.  By not allowing the buyers wages to go up the buyers are unable to buy the junk that the bone hawgers bring in from China.  This then results in lower sales and lower income to the bone hawgers.  

If the bone hawgers knew anything they would want the buyers income to go up so they could buy more of the bone hawgers junk, which would increase sales and make the bone hawgers even richer.  However, instead of trying to increase sales the bone hawgers are going after every penny the poor buyers have by grabbing their benefits and social security and anything and everything they can.  They are beating down on the buyers so they have nothing left to spend on the bone hawgers junk.

Summary:


That is why trickle down economics will not work, never has worked, and never will work.

UPDATE:
March 8, 2015  I read this article today http://www.addictinginfo.org/2014/09/14/15-now-seatac/  which helps prove the point that trickle down is a joke perpetrated on the American People for years.




12 comments:

  1. This comment has been removed by a blog administrator.

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  2. Your analogy is nothing short of ridiculous. You're assuming a zero sum game.

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    1. Thank you for helping define trickle down. For the most part it is a zero sum game. Reality speaks for itself.

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  3. I agree with this article completely. It is simple logic what you are saying, Tom. The same thing is happening in my town and country, and I was wondering last year - How can they be so stupid? I will repeat - It is logic! If we would use logic in every sphere of life, we wouldn't have problems. The only thing is that people are repeating lies that they heard are truth from somebody "smart". So they never ask themselves what is logical.

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  4. I quoted this article today, having read it a week or so ago I remember it, now that is some sort of record. Having stumbled across you then and again Now is another record.

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    1. Don thanks for the compliment. The check is in the mail. ;-)

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  5. You're assuming all rich people are greedy crooks...That's like assuming all poor people are lazy welfare cheats. Socialist Europe is broke as a result of an overly regulated economy...It's an unintelligent "Broad Brush" that actually paints your picture

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  6. "You only have one big dog biscuit to be shared by the two dogs. You have two different options you can do with the bone. Option one is to break the bone in half and give each dog a piece of the bone. Option two is to give the bone to the biggest dog and expect him to share it with the smaller dog."
    Who made the dog biscuit? Let's just pay them for the biscuit so they can make more.

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  7. Spot on. "Trickle down", as it was originally sold to the citizens of the USA, has been a demonstrable and utter failure. To continue to defend it one has got to have cognitive dissonance.

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  9. Trickle down economics is what happens if you pay more to the middle class. We middle classers spend 120% or our income...we represent the bulk of the population. Do the math. The 1% spend 1% of their income because 1% of their income is more then enough for a luxury life. Do the math

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  10. I am increasingly convinced the major voices in favor of trickle down notions really do know better, They just can't stop themselves.

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