What is "Trickle Down Economics"?

[EconChick]

LMAO, quoting Warren Buffett???

Buffett came from THE most liberal school out there.....he got his Keynesian indoctrination while at Columbia. You know, the school where even Socialists are considered not liberal enough.

Buffett was also part of Obama's original brain trust on the economy. And look at what a disaster.

Buffett needs to stick to making money in the stock market and STFU about the overall economy.

 

[nodoginnafight]

"Trickle Down" refers to stimulating the economy by pouring resources into the top economic strata with the belief that it will "trickle down" until it provides benefits for all.

It's a flawed theory.

 

[Lakhota]

any attempt to stimulate economic growth by cutting taxes for the rich will do nothing -- it hasn't worked over the past 50 years.


next question.

Exactly. Economic statistics have proven that. Economic growth has been higher when taxes were higher.

 

[Peach]

Nothing. We're discussing economics. Those are separate fields, btw. I realize to someone who never attended college they all sound the same though.

It is only through the supply side that innovation can be spurred, Keynes was not so much wrong, as narrow minded in his views; yes, if labor controls the economy, the wealth of labor will increase. Without the markets & supply increasing however, there will be no re input of that wealth. Products & services must increase in order for earned wealth to be reinvested in the economy. Thus Keynes should be discarded, old theory, and incompete.

Yes thats pretty much it.
A lot of economic policy from Roosevelt and even before centered on demand side. The thought was the Depression was caused by insufficient demand so measures were dreamt up to increase demand, like minimum wage rates and the like. It was hoped that higher incomes would spur more spending.
In contrast Reagan's advisors championed looking at the supply side. They suggested that creating incentives through the tax code to change behavior to encourage greater productivity would cause higher incomes and eventually more demand.
In sum the Reaganauts were correct. Their policies worked. The Reagan tax cuts were not targeted temporary cuts but permanent cuts to income taxes and others. It encouraged peoplel to work more and earn more. By contrast the Obama program is back to demand side focus, with targeted tax cuts and incentives for buying homes, cars etc. Those policies are gross failures, as the recent research on cash for clunkers showed.

"Buying incentives" are not market incentive, no. As for the "corporations will sell shoddy goods/services" line; that is discouraged by free markets. I disagree on Roosevelt's plan not "working", demand side economics work, TEMPORARILY. Continuation of focus on demand however leads only to debt, inflation, and stagnation. Supply side of course works, but regulation is necessary to tamper tax rates that are not sustainable.

 

[Siete]

LMAO, quoting Warren Buffett???

Buffett came from THE most liberal school out there.....he got his Keynesian indoctrination while at Columbia. You know, the school where even Socialists are considered not liberal enough.

Buffett was also part of Obama's original brain trust on the economy. And look at what a disaster.

Buffett needs to stick to making money in the stock market and STFU about the overall economy.

quoting the facts Warren knows FAR more about than you do.

 

[rightwinger]

Trickle Down economics was a Trojan Horse

In the 1980’s Ronald Reagan ushered in a new era in American economics as he cut the top tax bracket from 70% down to 50% and then down again to 28%. In order to get support for doing this from the people, and also from politicians, a very crafty set of lies were produced. As David Stockman, then Reagan’s budget director, put it: giving small tax cuts across the board to all brackets was simply a “Trojan Horse” that was used to get approval for the huge top tax bracket cuts. “Trickle-Down” was a term used by Republicans that meant giving tax cuts to the rich. Stockman explains that:

"It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory."

"Yes, Stockman conceded, when one stripped away the new rhetoric emphasizing across-the-board cuts, the supply-side theory was really new clothes for the unpopular doctrine of the old Republican orthodoxy."

The impact of Reagans "Trickle Down"

 

[nodoginnafight]

Trickle Down economics was a Trojan Horse

In the 1980’s Ronald Reagan ushered in a new era in American economics as he cut the top tax bracket from 70% down to 50% and then down again to 28%. In order to get support for doing this from the people, and also from politicians, a very crafty set of lies were produced. As David Stockman, then Reagan’s budget director, put it: giving small tax cuts across the board to all brackets was simply a “Trojan Horse” that was used to get approval for the huge top tax bracket cuts. “Trickle-Down” was a term used by Republicans that meant giving tax cuts to the rich. Stockman explains that:

"It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory."

"Yes, Stockman conceded, when one stripped away the new rhetoric emphasizing across-the-board cuts, the supply-side theory was really new clothes for the unpopular doctrine of the old Republican orthodoxy."

Yup - and what we found is that there are too many choke points that stop the trickle.

@ econchic: btw - is attack the messenger the extent of your economic education? Please address the underlying flaws of an economic theory. Just labeling something "liberal" and supposing that you've discredited it is not worthy of intellectual discussion.

 

[GreenBean]

The lefties here frequently mock "trickle down economics" as the cause of our slow economy. So what is trickle down economics? I want to hear an explanation. Snarky responses like "it's what the GOP believes" will be thrashed soundly.

Reagan's economic policies, - "Reaganomics" were supply-side economics, and based on trickle-down theory. The idea is that with a lower tax burden and increased investment, Industry could produce more, effectively increasing employment and theoretically wages. One of the primary problems with Trickle-down economics is that those on the low end feel as if they are being "Trickled -On" ... literally - as the incentives and tax cuts are directed to Commerical operations / Business /The Rich .

The Trickle effect also does not occur instantaneously - It sometimes takes years to "trickle-down" to the lower levels of society. As in the case of Reagonomics [And Bush Sr.] - By the time the full effects of Reaganomics hit - it was already the last half of Bush Srs. Administration and the incompetent ass-wipe Slick Willy Clinton got a free ride off of it.

 

[Lakhota]

Trickle-down economics is a simple concept.

 

[EconChick]

Dad23, why are you even here anymore. You've been completely discredited. Anyone want to see how badly, just look up the "Forget Statistics....Exuberance or Malaise?" thread.

You take a bunch of numbers that you've pulled out of your arse and they have no meaning in the big scheme of things. You completely fail to analyze the small picture let alone the big picture.

That's some funny stuff coming from the person who claimed that Bush 'provided' all the jobs that were created during his presidency, and,

that Bush's numbers were great if you only looked at the good years of his presidency.

She's so full of herself I swear she has to be CaliGirl under a new screen name.

Yeahhhh, I'm talking to the dude that's been laid off from the local car wash and has lots of dead time slurping up the handouts because he's not smart enough to get a higher paying job.

 

[bripat9643]

"Trickle Down" refers to stimulating the economy by pouring resources into the top economic strata with the belief that it will "trickle down" until it provides benefits for all.

It's a flawed theory.

Not looting them does not equate to "pouring resources into them." Your post, as always, reflects the liberal view that your net income is a gift from the government.

"trickle down" is just the liberal/commie/fascist name for capitalism.

 

[bripat9643]

any attempt to stimulate economic growth by cutting taxes for the rich will do nothing -- it hasn't worked over the past 50 years.


next question.

Exactly. Economic statistics have proven that. Economic growth has been higher when taxes were higher.

The economy stagnated for 12 years under high taxes during the depression.

 

[rightwinger]

Damn

11 Pages into this thread and our conservatives have not yet posted "I never got a job from a poor person" justification

What a bunch of slackers

 

[Siete]

any attempt to stimulate economic growth by cutting taxes for the rich will do nothing -- it hasn't worked over the past 50 years.


next question.

Exactly. Economic statistics have proven that. Economic growth has been higher when taxes were higher.

The economy stagnated for 12 years under high taxes during the depression.

bbbaaaawwwwwhahahahaha

the economy was a blank page BECAUSE of the depression, tax rates DID NOT cause the depression.

 

[GreenBean]

Trickle Down economics was a Trojan Horse

In the 1980’s Ronald Reagan ushered in a new era in American economics as he cut the top tax bracket from 70% down to 50% and then down again to 28%. In order to get support for doing this from the people, and also from politicians, a very crafty set of lies were produced. As David Stockman, then Reagan’s budget director, put it: giving small tax cuts across the board to all brackets was simply a “Trojan Horse” that was used to get approval for the huge top tax bracket cuts. “Trickle-Down” was a term used by Republicans that meant giving tax cuts to the rich. Stockman explains that:

"It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory."

"Yes, Stockman conceded, when one stripped away the new rhetoric emphasizing across-the-board cuts, the supply-side theory was really new clothes for the unpopular doctrine of the old Republican orthodoxy."

The impact of Reagans "Trickle Down"

Norton - That Graph you posted is a fantasy - and not based on any factual data - just wishful thinking .

 

[nodoginnafight]

"Trickle Down" refers to stimulating the economy by pouring resources into the top economic strata with the belief that it will "trickle down" until it provides benefits for all.

It's a flawed theory.

Not looting them does not equate to "pouring resources into them." Your post, as always, reflects the liberal view that your net income is a gift from the government.

"trickle down" is just the liberal/commie/fascist name for capitalism.

I didn't say where the resources that were being poured into the top came from now did I?

You assumed taxation or tax cuts and then made up an argument based on your assumption - not what I posted.

That doesn't indicate a strong position now does it?

 

[Dad2three]

LMAO, quoting Warren Buffett???

Buffett came from THE most liberal school out there.....he got his Keynesian indoctrination while at Columbia. You know, the school where even Socialists are considered not liberal enough.

Buffett was also part of Obama's original brain trust on the economy. And look at what a disaster.

Buffett needs to stick to making money in the stock market and STFU about the overall economy.

My gawwwd you are slipping ONLY one 'Keynesian' in that post???

 

[EconChick]

Here, allow me to educate the brainwashed and indoctrinated who've bought into complete revisionist history.

You know, the way inmates do.

Inflation rates were in double digits during Carter. As high as 19%.

Unemployment rates were in double digits, as high as 12%.

Interest rates were double digit. Close to 20% at times.


Now for those who are NOT paid by unions to come here and pretend the Soviet Union beat the U.S. and Reagan destroyed the economy...but are just not old enough to know the real history....what Reagan did was bring all those rates down to single digits.

Quiz for the liberal LIARS: When you bring rates from double digits for interest rates, unemployment rates, and inflation rates down to single digits, does this impact the average American in the middle class in a POSITIVE WAY or NEGATIVE WAY?

Anyone that says negative will be too stupid to be debated with again.

So how bout it? I'm waiting for the idiots who try to spin that bringing inflation, unemployment and interest rates way down is bad for the middle class. But I'm sure we'll have some.

 

[rightwinger]

Trickle Down economics was a Trojan Horse

In the 1980’s Ronald Reagan ushered in a new era in American economics as he cut the top tax bracket from 70% down to 50% and then down again to 28%. In order to get support for doing this from the people, and also from politicians, a very crafty set of lies were produced. As David Stockman, then Reagan’s budget director, put it: giving small tax cuts across the board to all brackets was simply a “Trojan Horse” that was used to get approval for the huge top tax bracket cuts. “Trickle-Down” was a term used by Republicans that meant giving tax cuts to the rich. Stockman explains that:

"It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory."

"Yes, Stockman conceded, when one stripped away the new rhetoric emphasizing across-the-board cuts, the supply-side theory was really new clothes for the unpopular doctrine of the old Republican orthodoxy."

The impact of Reagans "Trickle Down"

Norton - That Graph you posted is a fantasy - and not based on any factual data - just wishful thinking .

It just goes to show you what unrestricted spending will do for the economy

 

[GreenBean]

Damn

11 Pages into this thread and our conservatives have not yet posted "I never got a job from a poor person" justification

What a bunch of slackers

Did you ever get a Job from a poor person ? Did it involve the use of Knee Pads ? I didn't say were you ever given a .... Job