Exceptional tax cuts for rich 'good for economy': practice fails - theory is broken

ADVOCATES of trickle-down economics argue that, when the rich get extra income, they invest it and create more jobs – and a higher income – for others. Those people, in turn, spend their extra money. Eventually the effect trickles down the whole system, making everyone better off, in absolute terms.

So, what seems like a moral outrage – giving more to people who already have more – is in theory a socially benign action.
The trouble is it hasn't worked. In the past three decades, states with pro-rich policies have seen economic growth slow, except in countries like China and Vietnam that needed to jump-start socialist economies.

Lookie here! Yet another mid-level op-ed about the “surprising” observations that supply-side economics (also referred to as “trickle-down,” “Reaganomics, or my personal favorite – “Voodoo Economics”) actually does not work, and in fact has not worked anywhere -ever - in any western nation that adopted it. At best, the entire exercise seems to generally transform communities towards socialism - even communist countries.

It seems laughable that Americans threw out their thinking caps when faced with an overly simplistic ‘faith-based’ economic assertion “make the rich richer and everything will be better for the ‘not rich’. It took the great American actor placed in political power to ‘sell’ the idea to the voting middle-class, turning them into the grist for the industrialists’ mill.

Sadly, mostly no one will really hear this message; you, as you read, will likely only register the illogic of the situation remotely, and the point will fade quickly as you move on to other subjects of interest. I do not blame those who think this is all some abstract quasi-political commentary. You were trained to think so. Thank professional media productions and a twisted application of social educational theory.

Our politicians, the few who actually cut the real wheat from the political chaff – appear to fear revealing the extent of the cruel game being perpetrated on the populace. They fear explaining that the entire political construct has been complicit in a campaign to condition us to accept only what the carefully crafted group-think is programmed for. Ultimately, generations have been conditioned, and are being conditioned - but that is a topic for another day.

In the UK, upward income redistribution since 1980 has seen the share of the top 1 per cent rise from 5 per cent of national income to over 10 per cent. Yet the annual growth rate of income per person has fallen from 2.5 per cent between 1960 and 1980 to 1.8 per cent between 1980 and 2013.

One reason is that the rich have not kept their end of the bargain – they didn't invest more; and inequality, linked to poorer health and societal damage, worsened. Investment as a share of GDP used to be 18 to 22 per cent in the 1960s and 1970s but since then has been 14 to 18 per cent, except for a few years at the end of the 1980s.

The question is, why was it that those who immediately and vocally described the fallacy in this “economic” theory were the targets of all-powerful memes to render them into easily-dismissed malcontents and crazies. “Our politicians represent us!” was commonly the reason we acquiesced to the idea; we trust them. Less taxes for the rich, more freedoms for the economically powerful, and creeping fascist tendencies we see everyday increases… but never is it addressed from the unsavory perspective of “this isn’t right - and they are not unconnected."

We believe that we have a say. We don’t. Our imbecilic politicians shield their eyes from anything that might confirm that running a community’s affairs requires far more than ‘political expediency.” It requires a voice to speak truth to power. But precious ‘public images’ crafted by professionals are always a few key-stroke away from destruction – this is what the "establishment does." (For the record, the establishment persists despite politics.) Does it stand as a surprise that our politicians have no real knowledge or interest in anything outside of their employ in the field of "politics." It is about ‘appearing’ to care – not caring. It is about ‘appearing’ to listen… not actually listening. It is about being rich… not appearing to be rich. That the ‘riches’ are all virtual and imaginary is something we never talk about. Because if a person remains poor… it’s their own fault, right?

It is well established that a less equal society has lower social mobility. When talented people from less privileged backgrounds cannot move up the social ladder, the economy's long-term dynamism suffers. An increasing number of studies show that, above a certain level, higher inequality harms growth. Some are by the International Monetary Fund and Organization for Economic Cooperation and Development, which didn't use to be concerned about inequality.

Well, here’s a flash you won’t see elsewhere in print: ”Some are by the International Monetary Fund and Organization for Economic Cooperation and Development, which didn't use to be concerned about inequality. … you know why they “used to be unconcerned about inequality” and appear to be acknowledging it now? … Because for the last two or maybe three decades the prime concern of our beloved political parties and the jesters and fools in it has become orchestrating an elaborate scheme to remain in control for all time. “Continuity of Governance" is now their prime concern… why? Because even they know and have to reconcile themselves with the understanding that if you oppress a society –in any way- you will eventually have to pay for it… for example when people tire of the yoke of an imaginary burden (like make-believe money – a global phenomenon) for an elite class of super citizen - imposed by never-ending stream of make believe leaders, it could get very – very – ugly.

The 35-year experiment with trickle-down economics has failed for most people. Unfortunately, there is too much money and power at stake for its true beneficiaries to accept this reality and end this approach.

I wonder if it will take another 35-years before someone is given the authority to begin the fight to end it?

Thanks for reading!


Sourced from: Tax cuts for top earners fail because the theory is broken

a reply to: Maxmars

Good One
Best to you

a reply to: Maxmars

I think that this is a very good rundown of, well, how we got into this mess. I guess there is one thing I don't understand though. Are you saying that they are only putting on a "show" of acknowledging inequality? If so, to what purpose? Just to continue to placate the public...? Or are you saying that they (those wealthy super citizens) are beginning to realize that the gravy-train has to stop, or at least put the breaks on, somewhere or the whole thing will derail?

source: www.nps.gov...

As history repeats itself in broad patterns, it's important to remember that the purpose of Abraham Lincoln’s U.S. Civil War, which resulted in a wholesale slaughter of some 750,000 Americans leaving untold wounded, widows and orphans in its wake, "was to save the empire, not to abolish slavery."

"Everywhere in the West monstrous lies stand unchallenged. The lies are institutionalized in history books, course curriculum, policy statements, movements and causes, and in historical memory."

source: www.lewrockwell.com...

originally posted by: redhorse
a reply to: Maxmars

I think that this is a very good rundown of, well, how we got into this mess. I guess there is one thing I don't understand though. Are you saying that they are only putting on a "show" of acknowledging inequality? If so, to what purpose? Just to continue to placate the public...? Or are you saying that they (those wealthy super citizens) are beginning to realize that the gravy-train has to stop, or at least put the breaks on, somewhere or the whole thing will derail?

I am more inclined to agree with the latter supposition, but if we were to go hyperbolic with the assertion itself; that there is a super citizen "class" who exists as the ultimate 'persuaders' of what will transpire in the world - and that position necessitates being prepared for an all-out rejection of their influence in the world. They have been using tradition media to condition us to accept certain norms and harbor certain prejudices. It is what almost every overgrown establishment throughout history has done - to elevate its presence to posterity.

I have been watchful about the trends over the last few decades... frankly, only ignorance excuses the failure to observe the presence of "policy" as the culprit in nearly every malfeasance our collective global population has suffered... "policies" come from institutions... yet most are utterly ignorant of what passes for their own. Again, and to reiterate, this is not a 'fault' of the citizen; but the product of rampant commercialism and consumerism intruding in all aspects of the human experience.

We "bought" the idea from Reagan... at the time Bush (later to be President Sr.) called it "Voodoo economics" - which is precisely what it was - He only later was to be bought into silence with a VP opening.

Year after year - no such trickling down effectively took place anywhere... no things are the worst they been for most of us; and tremendously better for the 1% who appear to us only as a meme... because knowing who they were would violate their privacy.... hence no stats. What do they fear? Truly. Do they fear robbers, or beggars?

Well there are no bigger robbers or beggars than the governments which corral and squeeze their citizens while they throw money at rich people. Excuse me if I sound offended... I mean to try and see things from all sides... but how the 1 percent get to "own" 99 percent of everything, and the rest of the wealth is split between the remaining 99% ..... how does that work for people? Hell, WHY does it works for people?

Anyway... in the real world of people just doing their 'function' in society leaves room for a lot of misdirection... and it happens all the time. In every Nation, every union, every confederacy... where ever people are "convinced" by an image on TV, People magazine, NY Times, Washington Post... etc .. etc... I suppose we lost our sense of community... but I am dark enough to presume that it was not "lost" at all... just replaced.

a reply to: seasoul


I am often left in wonder at the amount of deep wisdom that can be found in history. It appears that as the 'modern' public has lost its compass in history; so too have the politicians... who now seem more adept at the 'beautiful' kill, and repairing long term damage to the communities they pretend to represent.

I look at the young one's now and wonder... how long before we draw from the pool of youth the candidate we actually need; but then I remember... they own the pool.

originally posted by: seasoul

source: www.nps.gov...

As history repeats itself in broad patterns, it's important to remember that the purpose of Abraham Lincoln’s U.S. Civil War, which resulted in a wholesale slaughter of some 750,000 Americans leaving untold wounded, widows and orphans in its wake, "was to save the empire, not to abolish slavery."

"Everywhere in the West monstrous lies stand unchallenged. The lies are institutionalized in history books, course curriculum, policy statements, movements and causes, and in historical memory."

source: www.lewrockwell.com...

Sorry, but you might want to recheck history. The Civil War was about slavery because slavery was the South's major economic engine. Slavery existed in industry, but also in households and government. Sexual slavery was a large part of it (Andrew Jackson's first slave was a young woman); and slaves were used in dowries, as collateral for banks, and for government labor.

Look up the Confederate Constitution (here you go). It contains at least 10 references that regulate & guarantee slavery, while prohibiting the importation of new slaves to protect the domestic slave trade.

Here's one such provision:

(4) No bill of attainder, ex post facto law, or law denying or impairing the right of property in negro slaves shall be passed.

And here's Article IV, Section 2:

Sec. 2. (I) The citizens of each State shall be entitled to all the privileges and immunities of citizens in the several States; and shall have the right of transit and sojourn in any State of this Confederacy, with their slaves and other property; and the right of property in said slaves shall not be thereby impaired.

There's also the Fugitive Slave Act of 1850, and slave patrols which forced the country to come to a conclusion about slavery. Plus my own family lines were enslaved at the time in Alabama, Georgia, and Florida, so I'm glad the war was fought & won by the North. After all, the 13th Amendment & the end of American slavery never would've happened if not for the Civil War.

EDIT: Also, I forgot about the slaves depicted on Confederate currency. Her e's a google image search to get you started.

As for the OP: Actually, trickle down economics works perfectly well for how it was intended. It was intended to help the wealthy lol. The problem is normal citizens actually believe the crap politicians say when they claim it'll eventually help us. The original joke for "trickle down" economics was about the rich urinating on the rest of us, with the "nourishment" being better than nothing. So it's working exactly as planned.

Trickle down economics works the same as a pyramid scam, even the model is the same. I don't know how people dont understand this, see it doesn't work and yet still try to claim it as a viable economic policy.

Bwahahahaha @ Reaganomics

It was these policies of the Reagan era that started the economic slide downhill into the abyss.

Within less than a decade, bye bye economic boom.

Drastically slashing the taxes of the 1% and big corporations was one of the foundations that allowed corporations to take over and rule the political arena. More money in their pockets simply meant more money to fund lobbyists for their own agendas.

Those monies did not trickle down to the everyday citizens... they trickled up to the politicians.

Absolutely nothing went back into the economy for the betterment of the whole.



And everybody fell for it hook, line, and sinker because Ronnie was such a 'smiley sweet little old guy'.

a reply to: enlightenedservant

I appreciate your input, but prefer it remain with the op and it's subject, if you please.

I will remind readers that the articles of the confederacy were a direct response to equally explicit efforts to eradicate human slavery in the union. Clearly, the prevalent culture in the confederacy was not centered around holding slaves, most confederate citizens did not. However, the schism and pain it caused was perhaps an equal measure to the strife the slaves endured as the property of another person. I can't help but think that most of us could not endure slavery.

The war began over secession, contest was about the ability of the national government to refuse the privilege. In the development of the events and torments of war , the greater effort had to become to allow the PEOPLE to remain intact as a nation, failing that there was no victory for the north. The cost in lives over time still ranks amongst the bloodiest in recorded history.

Back to the topic.... yeah, I have heard the old 'peeing on the poor folk' - trickle down imagery. but my nearest concern is that here we are over three decades later, with a ever-expanding middle-class extinction... and I promise you, as far as I have seen, the middle-class aren't getting richer...

When is this to be a serious discussion about how this tragedy of economic disparity can possibly be addressed as the pox on society that it is? Or are we still giggling at the funniness of it?

So what? People who have lived with trickle down til retirement know all this. No one listened then, no one will now, I knew when Reagan changed the tax laws, we were screwed. I wish you luck.

a reply to: MOMof3

Wow, thanks for taking the time to offer your opinion.

The whole point of the exercise of the OP is hope that we can finally overcome the "so what?" attitude that keeps these kinds of policies in place for decades. I guess that you are right up there with the rest of those people who willingly include "being screwed" by your own representatives as part of normal life. I never wanted that for my family and friends; it's part of why I share these thoughts. But I thank you for reminding me about the whole mess of people who just won't care.

a reply to: Maxmars

I am 64. I worked for 40years with three children in tow. My husband is disabled. I vote, send emails, voice an opinion, and debates on ATS. My real fight was started 30 years ago. It takes all of us accepting what we see, not just the activists and lobbyists. Now I am tired. I gladly pass the torch.

a reply to: MOMof3

I have about the same attitude. Tried my best to get the course we were on changed but well it wasn't until people saw the destruction coming in the distance that they took notice. Till then they were happy, comfortable, and well had plenty of credit if their incomes didn't provide the level of comfort that they desired. Or they were poor without jobs that paid a living wage but didn't really care because well they knew they had it better then those that were earning a little more than they were and didn't want to rock their boat by going for a job that paid a little more.

I actually noticed that the words that I had written in the letters to my representatives were twisted around by the republicans and used to tie us onto the course we were on. So well I am now just waiting for the destruction to hit knowing danged well that those who are suddenly getting it are in fact getting it only because the destruction has hit in their field of vision and they know now that they are next if they haven't been hit by now.

Very few will remain standing in glory when we finally hit rock bottom and it's a very steep clift we have fallen from with slick edges that have not one tree limb to cling to. Sorry!!!

At least you have a little coming from the gov't. I have nothing!

a reply to: Maxmars

So, higher taxes and bigger government are going to help build the economy?

a reply to: Maxmars

There is much more to our current predicament than just the Reagan tax cuts.

For example, the repeal of Glass-Steagall, and the passage of Gramm-Leach-Bliley...

We have become a nation of debtors and gamblers, not savers and investors, with the cream rising to the top -- as intended -- by both parties.

In business everything it seems is cut throat. They live by the age old adage that there can be only one. The ends justifies the means and screw the little man. Competition is a sin. Greed knows no bounds and if you can't see that, we don't have a chance in hell of ever changing it. What bright mind couldn't understand that 1% owns more than the other 99%? The class war is at epic proportions. You see civil unrest everywhere. You might all call it savage mentality but the real deal is the balance is one sided. You think you have it well off but are struggling to make your dollars stretch for less.

I knew the world wasn't fair. I knew the rich only get richer. I do believe in hard work and making something great but how much is too much? Monopolies are real and end with revolution. That's in the cards and all the money spent on defense of that are going to be wasted. You can't hold the human spirit down for long. That fact lets me drive on in a cesspool full of #.

It failed?
& yet...still plowing us straight to hell.


I hate to sound redundant but Keynesian economics > you. (That's not a personal you it's an all encompassing you)

originally posted by: anton74
a reply to: Maxmars

So, higher taxes and bigger government are going to help build the economy?

The world is not black and white, you know?

originally posted by: MOMof3
a reply to: Maxmars

I am 64. I worked for 40years with three children in tow. My husband is disabled. I vote, send emails, voice an opinion, and debates on ATS. My real fight was started 30 years ago. It takes all of us accepting what we see, not just the activists and lobbyists. Now I am tired. I gladly pass the torch.

it is no surprise to me that you are tired of this crap. You have struggled and continue to do so - this is in fact what most of us do. I understand the fatigue and the disenchantment with any notion of rousing a spirit of change..., as I stated before, we have been under continuously applied pressure to condition us to accept what our political theater provides as reality (in other words the status quo is sacrosanct and actual change driven by the people is a fantasy or myth.

You have a decade on me, and I can't (and won't) judge because in whatever number years from now, I may be just as devoid of hope that "we" can change anything, and we shouldn't try. But for now I still refuse to see my grandchildren pounded down by a culture of "conform or be tormented," sell your "freedom for survival," and of course the all pervasive... "the government knows best."