Quote:
Originally Posted by Mull
Perhaps my ignorance is on full display, but I disagree.
Trickle down fails because the system assumes the money will trickle down by the laws of supply and demand and goodwill, and it actually doesn't do so. My system mandates the money to flow to employees. Its different.
If you increased business taxes by a given brackets amount and that money went directly to the same programs for the same amount I am proposing, the average net impact on the business across Canada would be the same, and the employees would feel the exact same 'help' but you wouldn't call it trickle down.
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Trickle down economics fails because it relies on direct participation in the primary economy, basically failing to capture aspects of the hidden economy, family care, barter trade, private contractors(like uber drivers), unemployment ... which requires large scale government intervention, but the entire theory relies on under-resourced government. So it fails to adequately reward everything that creates value for society.
That and it doesn't account for the compounding effects of excess capital.
Leaving extra value with the employer and having it flow to the employee is trickle down economics, regulating the flow probably puts a band aid on a lot of the problems trickle down seems to have, but it doesn't eliminate them.