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Saturday, December 8, 2018

Here's the short reason why trickle down economics just doesn't work... not ever.

Economic growth is based on demand for products and services. When you take money from the poor and middle class to feed the rich you give them less ability to buy what the rich are selling. In the long run, trickle-down economics is bad for everyone, even the rich.

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Give a man who has everything $100 what does he do with it? He already has everything (stagnation). Give that $100 to a man who is poor and he has no choice but to reinvest (growth created by demand). Take away all his money and he has no choice but to try and take it back (crime).

In the long run it the tax breaks to the rich stop mattering. If we can't buy their products the money eventually dries up. A tax break without the revenue to back it up does no good. If they actually did use it to create jobs that would be one thing, but they don't, or at least they don't create them here. They don't feed the economy, they hoard it.

In fact, time and time again they somehow convince half of America the poor are the problem.

But for the rich it works for a while... even though time after time it has been proven to be unsustainable in the long run. And the politicians they own will help them make you believe it works because from the rich man's hand to the politician's pocket is the only time it does.

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