Ok now this may not make me the most popular person in the world but I firmly believe that the trickle down theory of economics works. What our current administration should be doing is giving tax breaks to businesses that will in turn be able to redistribute that money back down the food chain.
When corporations get more money in their pockets via tax breaks it benefits society as a whole. With more money to spend companies can either hire more employees and/or cut the price that consumers pay for their goods. Either way this in extremely beneficial to society. If the company gives a man a job he is essentially creating another consumer, which in turn helps stimulate the economy. If the company passes the money down by cutting the price of their goods, they make it so that more people will be able to purchase said item.
Now, if the government instead gives money directly back to the lower classes what will they do with the money? Well they will either spend it to neccessitate their immediate survival or they will save the money in the bank for "a rainy day." Neither of these things accomplishes anything long term for the good of the country.
The truth of the matter is the top 1% of the country effect the economy more than the 99% of "lower class" people. Whats sad is that most people agree with that statistic but over 40% of the people in this country think they are part of the 1% at the top.
Sorry this is getting a little bit rambly (not a word, but it should be). Moral of this story, give money to the rich, yes they can fix this country, they are the only people who can fix this country. When the government goes out playing Sherwood Forest with rich persons money to give to the poor it puts us one step closer to socialism.
Tuesday, February 10, 2009
Trickle Down Economics
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Trickle Down Theory
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