A quick explainer of how “trickle-down economics works”…
The top 1% hoard all the wealth.
That’s it. That’s the whole con.
That’s it. That’s the whole con.
TinyViolins · 31-35, M
The way I've had to explain it to people is like this, if you won a large sum of money, would you start spending right away, or would you wait until expenses came up? I figure most people would be buying or upgrading things, paying off debts, and maybe taking a nice vacation
The reality is that the business class would use the money saved from tax cuts right away to expand or fund different initiatives. It does provide a lot of economic activity and new jobs for about a year and a half, maybe 2 years, but eventually these businesses spent all they cared to spend and then economic activity goes down.
That's how trickle-down economics has always worked. The phenomena was studied 100 years before Reagan tried his hand at it. GDP did grow for like 2 years after Reagan's tax cuts, but then growth started slowing more and more until it actually shrunk at the end of his term, leading to the Savings and Loan Crisis
The reality is that the business class would use the money saved from tax cuts right away to expand or fund different initiatives. It does provide a lot of economic activity and new jobs for about a year and a half, maybe 2 years, but eventually these businesses spent all they cared to spend and then economic activity goes down.
That's how trickle-down economics has always worked. The phenomena was studied 100 years before Reagan tried his hand at it. GDP did grow for like 2 years after Reagan's tax cuts, but then growth started slowing more and more until it actually shrunk at the end of his term, leading to the Savings and Loan Crisis
Captainjackass · 31-35, M
View 6 more replies »
JonUK41 · 36-40, M
@iamthe99 Fine in theory but as noted you'd have to rely on government spending the money wisely.
In the UK we've never had a government that effectively implemented a tax and spend policy in the last 50 years. There's no sign we'd ever have a government I'd trust with more of my money.
So best that government takes less of our money. If you're a wealthy person you can always give more of your money to worthy causes - you don't need to wait for government to tax you more.
In the UK we've never had a government that effectively implemented a tax and spend policy in the last 50 years. There's no sign we'd ever have a government I'd trust with more of my money.
So best that government takes less of our money. If you're a wealthy person you can always give more of your money to worthy causes - you don't need to wait for government to tax you more.
independentone · M
That just isn't true, it's the wealthy blue states that pay more than they receive in tax dollars, all so the unproductive welfare red states will have enough money to continue to be unproductive.
MarthannBann888 · 70-79, F
As always dems are telling lies of omission.
According to surveys this year, dems hold 70% of the nation’s wealth.
What more power and wealth do they want?
Like the communists they copy, they want all of the power over a destitute nation.
According to surveys this year, dems hold 70% of the nation’s wealth.
What more power and wealth do they want?
Like the communists they copy, they want all of the power over a destitute nation.
PicturesOfABetterTomorrow · 41-45, M
@MarthannBann888 The only person lying is you. Elon is a Democrat now? WHy? Because he hurt you cult leader's feelings?
Literally none of that has anything to do with the subject.
Umm no. You can be billionaires or communists. You literally cannot be both. But you just throw around words you have no idea what they mean.
And it is the GOP robbing the poorest people in the US to give it to billionaires like Trump and Elon. So MAGA is make Americans poor....except the oligarchs.
Literally none of that has anything to do with the subject.
Umm no. You can be billionaires or communists. You literally cannot be both. But you just throw around words you have no idea what they mean.
And it is the GOP robbing the poorest people in the US to give it to billionaires like Trump and Elon. So MAGA is make Americans poor....except the oligarchs.
SunshineGirl · 36-40, F
@MarthannBann888 If that is true, why is Trump so determined to enrich them further through unfunded tax breaks?
trollslayer · 46-50, M
bookerdana · M
PicturesOfABetterTomorrow · 41-45, M