Re: Enlighten me. How does it work?

November 04, 2019 12:06PM
I don't come around here often so sorry for the late response.

The premise that 'rising waters raise all ships' is the general idea behind trickle down economics. It means when you cut taxes for companies and investors, they invest and spend more and as a result, everyone's lives improve. When you punish them, they spend less and those at the bottom of the distribution suffer the most. This is true and has been demonstrated since the 1980s in the following ways :

Avg Home Size by Decade
[www.newser.com]

Also...
[www.heritage.org]

Some highlights :

* 38 percent of the persons whom the Census Bureau identifies as "poor" own their own homes with a median value of $39,200.

* 62 percent of "poor" households own a car; 14 percent own two or more cars.

* Nearly half of all "poor" households have air-conditioning; 31 percent have microwave ovens.

* Nationwide, some 22,000 "poor" households have heated swimming pools or Jacuzzis.



So - has the 'rising waters raised all ships'? Have people's lives improved since the 'Reaganomics' of the 1980s? Absolutely.

One other glaring thing is that - when economists talk about capital spending from the top distributing wealth to the bottom - they're not restricting their premise to within the USA. In fact, the majority of "working class" who have received the most direct money has been basically everywhere besides the USA. See this : [ourworldindata.org]

***************************************************

Clearly it "works" in the sense that does what it claims - but whether you think it "worked" or not will depend on what YOUR expectations are.

Did you expect a tax cut to usher in the utopia? Did you expect globalization to guarantee an elimination of American poverty? Did you expect it to create single payer health care? I don't know, I don't know what you expected it to do but it definitely did do what it was meant to do which was raise our GDP and raise people's standards of living.


****************************************************

Regarding Kansas.

The Republicans in Kansas assumed that the thing holding people out of their state was their already "bottom 20% in the country" taxes. That was dumb. It's a dumb idea to think that if cutting *some* taxes is beneficial then *cutting all the taxes* will be exponentially so. When they cut all the business taxes to zero, it made sense for people to become 1099 contractors (ie, self exployed) because then they paid *NO taxes*.

There is absolutely a "sweet spot" where you're lower than your competition, you have attracted talent to your area, your schools are not falling apart and a small incentive to invest will reap rewards.

If you go below this sweet spot, all your doing is taking money out of the tax coffers and you'll know if you're doing it right by measuring the tax coffers themselves. If they drop instead of go up, you did it wrong.

FWIW, I don't believe in 'never ending Reaganomics'. Just because a tax cut is beneficial and aids the economy doesn't mean it's a never ending party every time you cut. There are diminishing returns. If Trump came out and said he wanted to cut another 10% I'd be against it, for instance. We're in a good spot where we're actually making more tax revenue than we were before and that's how you know it was a successful cut.



Edited 1 time(s). Last edit at 11/04/2019 12:15PM by Death_Claw.
Subject Author Posted

Holy. Shit.

GoldenApple August 27, 2019 11:02AM

Even if its true.. what's the holy shit?

kadsuane September 04, 2019 03:24AM

He has a muslim fetish

MiyagiYojimbo September 04, 2019 09:29AM

In psychology, we call this "projection".

GoldenApple September 05, 2019 12:25AM

She's just intensely dislikeable.

Death_Claw September 05, 2019 05:17AM

Only to the far-right

GoldenApple September 05, 2019 06:33AM

"very likely the future of the American left"

PaulO September 10, 2019 05:42AM

She polled 9% approval among swing state Democrats.

Death_Claw September 06, 2019 02:35AM

Hey buddy get out of here with that we choose our own truths and feelings over facts round these parts. n/t

jalim September 06, 2019 03:26AM

I love when you talk about facts in this particular spectrum..

kadsuane September 09, 2019 05:00AM

Not sure what you mean.

jalim September 09, 2019 05:25AM

Mostly that you almost always ignore actual facts and your go to medium for information seems to be memes.

kadsuane September 09, 2019 08:52AM

Excuse me sir, do you have a moment to talk about Pinochet?

MiyagiYojimbo September 09, 2019 08:27AM

As a dirty half-breed mutt

MiyagiYojimbo September 05, 2019 08:42AM

The far left is not the future of anything really

zannon September 05, 2019 08:27AM

It never ceases to amaze me...

Death_Claw September 06, 2019 07:04AM

"People who call everyone else [racist, et al.] see no issue making sweeping ignorant generalizations."

The Faithful of Nazmorghul October 26, 2019 02:13PM

Expanded...

Death_Claw September 06, 2019 07:17AM

I am pretty sure reality has repeatedly shown trickle down economics are a fairytale

Quas September 06, 2019 05:02PM

Somewhat disagree...

Sam February 09, 2020 06:42PM

Ok.

Death_Claw September 06, 2019 07:50PM

Enlighten me. How does it work?

Quas September 07, 2019 02:19AM

Re: Enlighten me. How does it work?

Death_Claw November 04, 2019 12:06PM

Le sigh

Quas November 05, 2019 02:45AM

So help me out here..

jalim November 05, 2019 05:29AM

Re: So help me out here..

Quas November 06, 2019 02:40AM

The companies in question..

jalim November 06, 2019 04:34AM

Re: Le sigh

Death_Claw November 05, 2019 03:52AM

Re: Le sigh

Quas November 05, 2019 05:22AM

Re: Le sigh

Death_Claw November 05, 2019 07:02AM

i think you've had a lot of kool-aid

The Forsaken(VIP) November 21, 2019 04:33PM

RE: Capitalism disproportionately rewards the one with the capital vs. the laborer

jalim November 22, 2019 06:48AM

No I don't

The Forsaken(VIP) November 22, 2019 07:12AM

It comes down to negotiating power

daurwyn November 22, 2019 09:38AM

professional sports

Quas November 22, 2019 12:24PM

You're being simplistic with this argument....and wrong in a lot of ways.

Sam February 09, 2020 06:52PM

Re: You're being simplistic with this argument....and wrong in a lot of ways.

Quas April 25, 2020 05:20AM

They DO have a great deal of leverage. It's just that very few of them know how to use it. (n/t)

Frosty November 22, 2019 03:06PM

Regarding the concentration of wealth in general...

Death_Claw November 05, 2019 04:11AM

Keep repeating the lie often enough... someone eventually will believe it

kadsuane September 10, 2019 09:20AM

2019 calling the 1980s...still waiting for that trickle down (n/t)

HairyOrangutan September 06, 2019 07:36PM

I'll respond just for fun.

zannon September 06, 2019 10:01AM

I agree with nearly everything you've said except for that slander against Cocaine Mitch

Sam February 09, 2020 06:54PM

Re: I'll respond just for fun.

Death_Claw September 06, 2019 08:26PM

This is hilarious.

Frosty September 05, 2019 08:13AM

It's over, we're done.

MiyagiYojimbo September 05, 2019 08:20AM

Well at least we know. Not knowing is the worst! (n/t)

Frosty September 05, 2019 08:56AM



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