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How does trickle down economics work?

I read on my favourite Conservative blog that Trump's tax cut will make everyone richer. Like if you give rich people more money then they have more money than everyone else so everyone is rich. I wanna believe this but I'm real confused.

Do these folks go out and be 'job creators' hiring more nannies? I mean what if they just wanna keep the dough or buy a house? Or what if businesses have enough workers? I know Government wastes money and sh*t but I just don't get how wealth is supposed to trickle-down.
SW-User
At a time when the fabric of our society is being challenged by the greed of the über wealthy -hoarding an obscene percentage of the world's wealth -do you really think the solution is to give them more?
ladycae · 100+, F
history has proven that trickle down economics f. the rich just get richer. and the poor get poorer. we had trickle down economics with reagan, and both bushes and all that did was create the great recession that in some ways still effects us now.

the idea is that if you allow the rich more money they will turn around and spend that money on building businesses and investing in the little guy. but it just hasn't happened that way ever.
It was always bullshit and has never worked, for a number of the reasons you pointed out in your initial post. It's been tried over and over again, mainly under Reagan and Bush II, and it just puts more money in the pockets of the rich. That's all it does.
Marcette88 · 36-40, F
I think it means everyone down below really gets pissed on.
Goralski · 51-55, M
Wealth doesn't trickle down. All the evidence shows the rich getting richer and holding ever greater portions of the world's wealth.
Karlbodge · 22-25, M
@Ax17x7:

Does this mean we are going back to the time of the King?
@Ax17x7: I see you dodged my question and can't name the Kings owning 99% of the wealth. Do you have the answer or not?
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Cierzo · M
Someone who is a marxist in believe in the class struggle fairy tale will never believe in trickle-down economics. The idea is that with tax cuts consumers have more money to spend and therefore corporative sales rise and they employ more workers.

Also, with tax cuts for businesses, they are able to hire more workers, so there is more people with money in their pockets...see first paragraph.

However, something else is required, high tariffs on foreign goods and services so that consumers purchase national products.
Xuan12 · 31-35, M
That was kind of the idea in the USSR. Oh, we need more jobs? Let's just make new companies even though there's no market for them, they'll produce a bunch of goods no one will buy, and then we'll just start over....crash and burn. Only difference is that instead of the state doing it directly, we're giving money to rich people and asking them to do it, then they don't do it, because they didn't get rich by founding companies that there's no market for.
Xuan12 · 31-35, M
That only works if there's not enough capital to form businesses. But the US has tons of capital. What's missing is market-space. The markets are saturated. More and more US consumers have limited budgets, so their capacity to consume is tapped out. Giving rich people more money isn't going to make them start new companies in tapped out market spaces. That'd be dumb.
You mentioned, "buy a house," well, someone has to build that house.
katielass · F
@Ax17x7: Yes but it's already illegal to hire illegal aliens. It's just another law that is not enforced and frankly never has been. Not since it was passed in 1986. And even if it were enforced the penalty is so inconsequential it's almost like losing a box of nails. The penalty needs to be prohibitive and include jail time. Construction jobs are not jobs Americans didn't want to do, they were cut out by the presence of illegal aliens willing to work for less.
@Karlbodge: And what exactly is the American dream?

Seems more and more people today are so self entitled that they expect everything to be handed to them. Fact is most things come so easy to us today, that many people have no idea what it's like to struggle. So instead of working hard, they blame the people who have worked hard and earned lots of money for their work, and expect them to pay for everything.

Excessive taxes on the rich is not the solution because it disincentivizes people to work to get that far a head.

If you want to make the argument that people can't get ahead anymore, well blame the government who passes regulation and laws making it harder for normal people to start their own business and being successful for themselves.

You want to know how to achieve the American Dream. Strip government of its power and make it easier for people to succeed on their own without government handouts.
therighttothink50 · 56-60, M
@Ax17x7: “The problem with socialism is that you eventually run out of other people's money.” -Margaret Thatcher-
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Karlbodge · 22-25, M
@Greenbare: [quote]that's how economics works in the real world with smart people.[/quote]

Wow I can't believe something so simple can work so well. I am amazed nobody thought of it before. Its easy.
OggggO · 36-40, M
Do you mean how does it work in theory or in practice?
Karlbodge · 22-25, M
@OggggO: The theory is the practice. Government is stopping everyone from being rich.
This message was deleted by the author of the main post.
jackjjackson · 61-69, M
YOU close your eyes open your mouth and throat ......

 
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