Quote:
Originally Posted by blankall
The term "trickle down economics" IMO gets a bad wrap. When it was conceived the idea was to promote business, which would create more jobs and lead to prosperity for all.
The issue isn't policies that promoted business, but policies that benefited only the wealthy and strangled business. I've mentioned the issues of decreasing tax base, property prices, limited zoning opportunities, access to capital etc...these aren't trick down policies. These are policies that concentrate wealth and then put an abrupt stop any trickling down.
As for dramatic change, the main issue is that there are too many people with too many resources benefiting off the status quo. Every babyboomer with a property worth 20 times what they paid for it loves the current situation. They are appeased and believe that they've earned the wealth they have. They also form a massive voting block, and an even larger share of the total economic power. On top of that, their children don't really like what's going on, but also realize if they don't rock the boat they are in for a big pay day when their parents kick the bucket. Overall, societal pressure to solve the issue is low, and the inevitable outcome is a collapse of some kind.
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Trickle down economics gets a bad wrap because it doesnt work and it defies basic logic
The reason people consider communism a non-starter is because human nature is too greedy and individualistic for it to work,people are always gonna want more than their neighbors especially if they perceive like they earned it
...however proponents of trickle down economics use the complete opposite logic that individual stakeholders who receive more profits will part with them willingly is just asinine, especially in an economic system that succeeds because of the individual quest for wealth. Additional profits has always and will always not only mean those increased profits go directly to the stakeholders(as the system is designed), but that these stakeholders now have an expectation of a baseline of growth from it
It makes for some good rhetoric(a rising tide does indeed lift all boats), but doesnt work in practice