The entire right wing economic theory is a lie, or more correctly, a con. Debt and spending drive the economy that affects us, the middle class. Trickle down theory holds that boosting the top of the money chain creates jobs and money at the bottom; it does not. It drives wealth at the top, not prosperity at the bottom. The fate of the middle class since 1980, which is basically a meteoric fall into the pit of low wages, stagnant growth, while a small few get rich and stash money in the Caribbean somewhere ahem Mitt Romney ahem .... is visible proof that the whole Trickle Down idea was nothing but a sort of pyramid scheme that shoved money up from the bottom to the top, where it stays. To get the economy going, you have to get workers enough earnings to be able, and then motivated, to spend. You have to have them prosperous enough to afford, and maintain, credit so that they can borrow. Republicans want you to believe that borrowing is somehow immoral. Of course, their rich patrons borrow billions to advance their schemes and embellish their corporate cash positions. But enough rich-bashing ... lets just talk about ordinary people. Try this exercise: Open up Google maps over any residential neighborhood in the country and look around. How many of the houses you see, and newer cars in the driveways, do you think were purchased with cash? About the same percentage of corporate real estate, factories, and equipment that were paid for with cash ... not very damned many. Credit is the fuel that runs the engine. The 2008 collapse was a crushing blow because ... it dried up credit. Buying stopped, demand evaporated, jobs were lost ... well, you remember. We arent talking about whose fault it was, the endless debates over that are intentionally aimed at taking your eye off the ball. The ball is the economy, and the force that moves the ball is spending, supported by middle class wages and credit. Its that simple. It aint rocket science. And that other theory? Its a goddamned lie, from top to bottom.
Posted on: Sun, 06 Jul 2014 21:55:09 +0000
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