Is trickle down economics a myth?

Discussion in 'Economics' started by nitro, Oct 26, 2010.

Is trickle down economics a myth?

  1. Yes. It is a dangerous idea that leads to great disparity in wealth.

    16 vote(s)
  2. No. It works and has worked.

    5 vote(s)
  3. I don't know.

    1 vote(s)
  4. I don't care.

    0 vote(s)
  1. nitro


    Why the Fed's 'Trickle-Down Economics' Is Failing

    "The heart of the Federal Reserve's policy to extricate the nation from the lasting grip of a deep recession is in essence a variation of what's known as "trickle down economics." The government aims to boost the net income of the wealthiest Americans, so that as these top earners spend, their wealth will "trickle down" to average Americans via service and production jobs..."

    See full article from DailyFinance:
  2. Rich people already have spent what they wanna spent, they are still rich.

    Poor people have a permanent backlog of stuff they want to buy.

    Stimulus should always go to the poor first.
  3. It worked long ago when the Henery Ford types practiced Ford-style capitalism--high wages, humane benefits and working conditions, moral improvement and generally having a common goal with the workers of America. Ronnie Rayguns and his union busting, break the workers back, keep it all at the top style is the trickle down we have today. The only thing trickling down is warm and wet. I believe it's called shit and piss.

    A slightly dated, but appropriate article.
  4. Ash1972


    The Fed's current "trickle down" (monetary) policy has nothing whatsoever to do with the hugely successful supply side/neo-liberal fiscal policy of the Thatcher/Reagan years. The latter depended on making it more favourable to invest (and therefore produce) by cutting taxes.

    The current trend in the US seems to be to print money, expand welfare and increase taxes. I don't see what there actually is to "trickle" down..
  5. You should read
    Trickle Up Poverty!
    Explains alot with facts!

  6. +1

    This is not true supply-side economics. The USA is in the business of raising taxes. There can be no trickle down when citizens are being squeezed so tight.
  7. I read recently even the government realizes that the rich when allowed to keep more save more. This makes sense since that's how many I know that are rich got rich by being frugal among other things.

    Did anyone see that Google runs their business through offshore corps. to save almost all taxes. Why not just make this country more business tax friendly to keep more of the money onshore? Those accounting jobs would go here instead of Dublin.

    So Trickle Down no, but a more pro business corporate tax structure yes. And yes a flat tax or fair tax.
  8. In 1937, I was 4 years old but I still knew that we had lost everything that my father had worked for including our house, our car, our business, our furniture and all of my toys.

    We had a roof over our head but no electricity and we kept our food out on the fire escape in a 6 floor tenement in Hell's Kitchen, NYC. So I asked my mother what happened and she replied, "The rich people now have all the money and they ain't gonna spend any of it."

    She should have gotten the Nobel Peace Prize For Economics.
  9. zdreg


    economies grow through investments which is the flip side to savings.
    the rich save and the money is invested to make a country more productive. givng to the poor and least productive member has been tried by every socialist country and populist dictator. the results have been uniformly slow or no growth.
  10. You have the greatest memory of anyone on this planet. You can remember such an event that happened 73 years ago? And you were 4 years old? Wow. If I didn't know any better, I'd say you were making things up.
    #10     Oct 26, 2010