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Would be Watcher

Location: Canada
Member Since: Sat May 17, 2008
Subj: Re: I'm not an economist at all...
Posted: Fri Mar 12, 2010 at 05:56:54 am EST (Viewed 9 times)
Reply Subj: I'm not an economist at all...
Posted: Thu Mar 11, 2010 at 04:34:23 pm EST (Viewed 759 times)

Previous Post

    The problem with "trickle up" economics, is that your economy isn't growing. That's why a standard process in recessions is to cut taxes on the rich. You free up more money at the top and they can spend that money in better ways for the economy, like starting new businesses, spending money on research, etc.

    When rich people have money, their goal is to make more money. So they invest it. That means growth. So if you want to grow the economy, then you give the rich the ability to make more money. Obviously the problem is apparent, and you have to find the right balance between how much to give them.

...but isn't contradictory to expect the solution to money redistribution to be an even greater concentration of money into the pockets of those who already have most of it? Wouldn't it makes the problem ever more important down the line with rich being ever richer and poor ever poorer?

Youre right.

We only need look at modern Russia to show that this "trickle down" idea is a fallacy. Russia is exteremely right wing economically with the government being very lassie-fare toward businesses (as long as they dont challenge Putin). Russia has more new businesses and the highest number of millionaries of any country on earth. however, the rich only get richer and the poor poorer. and the gap continues to widen.

the "trickle down" theory is just a theory. it doesnt actually work in practice. but the rich would have you believe otherwise:-)

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