commented on Trickle-Down Economics: Four Reasons Why It Just Doesn't Work
2016-10-28 15:41:02 -0400
Trickle down does not work. Most recently we had eight years of trickle down with George Jr and we went into a deep recession only other effect was an increase in the wealth gap and a further propping up of the stock market. Trickle up (Keynesian) makes more sense – everyone $100k on down does not pay income tax – they will consume more which will increase the demand on goods and services which will create jobs and generate higher revenue for businesses/wealthy. At the level of cheap money in the market and the wealthy business class having access to it – they do not need a tax break to create a new division or subsidiary etc. If the shareholders at the firm get a tax break they are not going to take that “extra” money and hire a couple new lawyers – unless they need them – then they will hire them anyway.