June 30, 2006
Not so much with the trickle down...
Bonddad, whose children I would love to have (if I, you know, had a uterus), has an excellent post up over at BOR thoroughly refuting trickle down economics.
Trickle-down economics “is the view that to benefit the wealthy is to benefit the middle classes and even the poor. Essentially, high taxes prevent upper-income taxpayers from spending and investing. By freeing them from high tax rates, their expenditures will have a “trickle-down” effect that will benefit lower income earners. However, Republican economic policies have demonstrated trickle-down economics offer no revolutionary effect. Instead, the resulting wage, investment and job growth is on par or below levels associated with an economy that uses higher-marginal tax rates on upper-income earners.
First, note that this argument assumes the top income earners have a disproportionate amount of national wealth. Why else is it necessary to free this trapped money? In short, trickle down confirms the wealthy have a disproportionate amount of assets.
Posted by mcblogger at June 30, 2006 02:05 AM
Trackback Pings
TrackBack URL for this entry:
http://www.mcblogger.com/movabletype/mt-tb.cgi/501
Comments
Post a comment
Thanks for signing in, . Now you can comment. (sign out)
(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)
