Why "Trickle Down" doesn't work

[expat_panama]

It is a lie of liberals that 'trickle down' was ever an actual policy...

Name calling and straw-men, tools for lying hacks, it's a long standing tradition going back to the mid-1800's when the Marxists invented the word "capitalism". They knew nobody wanted to fight the idea of working for a living so they strutted out the lie that they were the ones in favor of the working class and those actually worked for a living were just 'stingy'.

So my first impulse here when I saw this 'trickle down' thread was to lob a name right back at the liars and say Democrats are advocating Obamapissonamericanomics, but I've never enjoyed that approach.

We can keep working on the choices of state economies vs. private economies and let the leftists play games.

 

[Flopper]

Not just a rich guy.

the reason economists aim targeted tax cuts toward the poor is that is assumed that poor folks have a consumption function >1. Rich folks, who save money, have lower consumption functions the more they have. The assumption is that rich folks have a consumption function approaching zero. Which is why this is such a stupid straw argument. Giving breaks to people who demonstrably don't spend very hard is the definition of bad policy.

The argument for Reagan style tax cuts is not that we should give money to folks who won't spend it. Instead we should increase the returns on investments, so that people do more profitable investments. No matter how much money anyone has, they always want more. If you increase the return on a dollar, there is more chance that folks will put that dollar to work.

And giving money to poor folks does not really mean they will spend it. They are more likely to use the windfall to improve their financial position as well, by paying down debt. Which is mostly what happend to the stimulus bills passed during the Bush administration. People were given $600 and the money went right to the credit card banks as folks paid down their balances and reduced spending, as people began to batten down for the perceived coming storm

Once markets become overinflated as we saw in the real estate market, correction is inevitable. I don't think changes in tax rates or interest rates can stop a correction. They can just soften the landing.

 

[Annie]

It is a lie of liberals that 'trickle down' was ever an actual policy.

Hayek has always been the economic policy of conservatives. Keynes was an idiot.

And a couple of thread above you another right wingers says, "Trickle down would work even better if there were no income tax."

The truth is Republicans have no viable policy. They call me names and offer nothing of substance. How can they? They don't know anything.

I don't think you are an evil person. I just think you probably failed to be promoted to 7th grade and have developed a severe inferiority complex. Probably a small penis too, but not as small as whatever gray matter might be found inside your skull.

Some conservatives, like some liberals not only encourage education, but are quite educated themselves. Funny thing, none of them are likely to call into question the others respect for such. You however make numerous references to the devaluation of education by your term, 'rightwingers,' I just feel sorry for you.