Forum Post: Trickle down economics
Posted 12 years ago on Oct. 8, 2011, 4:47 p.m. EST by nVenti
(48)
This content is user submitted and not an official statement
Trickle down economics works.
Need proof ? Google Trends show an ever increasing query for "Money shots" since it began gathering statistics. During this time period we know that wealth has also become more concentrated.
What is a money shot ? well that's wealth tricking down your daughters face.
Mitt Romney's Taxes prove that Trickly Down Economics Doesn't work. Romney did not start a business and didn't hire American employees. He is rich, he got reduced capital gains under bush (Most of his yearly earning are Dividends).
And what has he done to make the US Stronger? He took as little Risk as possible to keep his money secure. He structured his wealth in stocks or bonds that produce Dividends. He is Risk Averse. The Rich are not dumb: they don't want to take Risks when they can collect Dividends from secure businesses with a good business model that have proven themselves.
Therefore, cutting taxes for the Rich doesn't help put US Workers back to work.
The problem is trickle down married to a service based economy.
In trickle down the money goes up and then is returned back down as newly created jobs, investments in means of production, and wages.
A service based economy requires a constant inflow of money from foreign investments to replace the money that was sent overseas to buy exports.
So what ends up happening is the money goes up, heads overseas to make the necessary foriegn investments, is invested down in jobs and means of production, and comes back as return on investment directly to the wealthy investor. Then it heads back overseas or into a bank, but not back down in this country.
Actually, I think you've stumbled upon an important conversation.
The corruption of our political system is historically linked and correlated with our increasing consumption of sex and and our increased activity of demeaning, immoral behavior toward women.
The link is actually there if you are willing to see it.
Our donations appear to be trickling down to Nicaragua.
Open wide everyone. The Koch brothers started another download !
i for one praise our money shot overlords!
You are an offensive socialist who needs to sit in a corner for a while.
Trickle down economics accounts for why more and more of our people have become "piss poor".
Agreed trickle down might not be the answer, but the reasons people have become "piss poor" isn't linearly associated with this idea. Why don't you blame the Chinese, Vietnamese, or Indian firms that produce goods you consume for cheap. Blame their employees for working for a $1 a day. Do you wanna work for a $1 a day? Blame Globalization if you want to put the blame somewhere.
The Chinese are NOT to blame, OUR CORPORATIONS that shipped millions of jobs overseas are!
The Chinese people are in the SAME situation as we are. In a recent poll, 96% of the people in China expressed "anger" at the "utltrarich" who are bleeding the country. Sound familiar??? A revolution like IWS is very much in the works in China. They are our brothers and sisters and I salute their courage. Each year I light a candle on the anniversary of the Tienanmen Square massacre.
I can pose it this way: A Chinese manufacturer of cars with a lower cost structure, similar quality product and design to US companies decided to import to the US. US consumers decide that it is in their best interest economically to buy the foreign good. US corps can’t reduce their cost structure to compete and eventually go out of business. I agree outsourcing costs America in many facets, but because of global competition they would either have had to outsource or face becoming bankrupt.
I wasn’t blaming the foreign worker, I was illustrating the paradoxical nature of not outsourcing. If we don’t outsource those companies with their cheap labor overseas will put us out of business. If we do outsource domestic corporations are the bad guys. Wouldn’t it be more fruitful to still have “US” companies than to succumb to companies that originate in countries with comparative advantages?
For real. Another phantom menace for the princes to point to.
Would you mind rephrasing that in plain English, please?
For real.
The Chinese are another phantom menace / scape goat that our princes (corporations / 1%) have created.
I'm glad to see someone call out the "Chinese" fear mongering.
I heartily concur. The Chinese have been dishonestly scapegoated. It seems America always needs to create a "bad guy" in order to manipulate domestic public opinion... I call it "comic-book-thinking" and even the supposedly intelligent Obama thinks in those "we're the good guys, they're the bad guys" terms.
I wasn't brought up in a particularly racist family, but I do remember hearing some paranoid talk about the "yellow peril"... Older and wiser, I now realize the real peril was "stupid white men"!
Ok. Let's try another approach. How about we try the globalization as it affects small and medium sized businesses. 1) Diamond setting corps in NY. Small businesses, mostly individuals without employees or maybe one individual who works for them. They are being displaced because it is now cheaper for a retail jewelry store to send diamond setting repairs/jobs to China and receive them back in 2 days.
2) Medium size accounting firms now take advantage of financial outsourcing. They send your tax information to Indian firms that compile and process your tax forms. These indian firms send them back and your accountant sends them to the gov't. This is a savings to hiring accountants.
These are real life small and medium size businesses that are affected by globalization and the cheaper costs of labor abroad.
Globalization isn't a tool used by Multinationals to sell the public on why they are out of jobs. It is affecting small and medium sized businesses in real ways. I have cousins in example number one, thats why I can specifically talk about it.
The trade deficit is not because the developing peoples want to be paid less. The trade deficit is because the developing peoples are oppressed and therefore paid less.
That said, Protectionism has its virtues.
Your right. No one wants to make less, they do make less because there is a market for labor in every field in every country. Janitors are paid x, because they can be replaced with a large labor pool. Doctor replacement would command a higher price because there are less people qualified to fill that vacancy. In China, there is so many people doing non specialized jobs that entire factories can be hired and fired without raising costs. There are millions of people living in villages that are still living on less that $1 a day . Also the national gov't telling companies they have keep wages low to prevent inflation in the country. Protectionism in the short run reduces the spending power of the people in this country who are already distressed financially. If you are barely making ends meet and your costs rise by 20% then you could be pushed over the edge. Also some of the principle reasons for WWII was protectionism during the great depression. I would rather not repeat history because we are unhappy with our current economic conditions. A much better solution is trying to get the Chinese to float their currency. Offers the same perks as protectionism but less volatile nature.
Or we can embrace the Free Market via a sovereign wealth fund which owns the Natural Monopolies of the day (and their unlimited profit). And use that to put all Americans on vacation.
Wait, isnt that called Facism ? lol.
Well, since we "Americans" are typically the financiers of these global sovereign wealth funds, I don't think we could go on vacation. If our country decided to take them over/buy them....however attain them, we would still need to work to fill them. No vaca just yet. Even if we convert to communism, socialism, feudalism, and so on..... If Saudi Arabia still has oil and we need it, we are going to exchange some good for their good in a market of price/equilibrium discovery.
Those monopolies are only monopolies as long as people in this country need that good. In 2007, America reached its peak oil consumption. If the rest of the world started following suit, there wouldn't be much of a monopoly eventually.
The reality is that it is...
"Flow up Economics"
...or...
"Flow up Resources"
How? See this two-part post: http://occupywallst.org/forum/printing-presses/