- Dec 27, 2009
- Reaction score
- Los Angeles, California
"Economist Barry Bluestone, who, with Bennett Harrison, published in 1988, one of the first books harshly critical of Reagan's economic policies, recently explained onPBS 'NewsHour' that supply-side economics redistributes wealth from the middle class and the poor to the wealthy.
"The problem, he said, is that the wealthy only spend about 30 percent of their income, while everyone else spends nearly all of theirs. Consequently, he said,
"'... as we move money away from working families towards very wealthy families, we take more and more consumption out of the economy, means slower and slower growth, means higher and higher and extended unemployment.'"
First of all, how many disagree with Bluestone's allegation the wealthy spend only 30% of their income compared to the majority who spend "nearly all" of theirs.
If this is true, does that pose a special problem for any country with an economy that's 70% dependent on consumption for its survival?
What Trickle-Down Economics Has Done to the US The Rich Get All the Money