Why "Trickle Down" doesn't work A right winger inadvertently explained this to me. If you took every bit of capital and money from the top 5% and used it to run the government, the money would be burned through in less than a couple of days. See? If the richest Americans don't have enough money to fuel the government then what good would the even tinier amount that comes from "trickle down"? The same people talk about "using capitalism". Let's take a look at what "capitalism" really is. Definition of CAPITALISM : an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market Capitalism - Definition and More from the Free Merriam-Webster Dictionary Investments - you have to put money in to make money. Competition in a free market - Republicans think this means no rules or regulations. That's why, in their mind, it's called a "free" market. And that is where "trickle down" falls completely apart. Free market is actually following the rules of "supply and demand". Regulation plays a very small part. The first TV my family had as a kid was black and white and had a round screen. In the 60's, color TVs came out, but they were very expensive. Why? Because everyone wanted one and there weren't that many. Why? Because they just came on the market. Over the years, as more and more were available, the price dropped. Classic "supply and demand". When the demand is high and the supply is low, the cost is high. As the supply increases, the cost drops. How this can be manipulated. Oil companies are masters at "supply and demand" manipulation. When the price begins to drop, the oil companies hold back product to force countries to "pay more". The recent rise in cost isn't because production is less, that hasn't changed noticeably. This price increase is from "speculation". Speculation is another thread. Speculation comes from "de-regulation".