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I keep thinking about trickle down, but it stops making sense to me when the government is too large. If you apply trickle down if the government is too big, eventually you will have a serious debt problem. On the other hand, if taxes are too high the rich will go somewhere else and the situation will only be slightly better than the worst case scenario.
Trickle down still works-------in China. We the consumer purchase products from American companies who expand their operations in China or similar who manufacture on the cheap and sell to us at a hell of a markup (depends on what product). I believe there are clear cut ways to remedy some of this exploitation.
It's the theory that if you allow the upper end of the income earners to be free and be productive with their money, their economic activity would benefit all classes as they hired people or spent money on other businesses. The money starts at the top and trickles down to all classes and all are better off.
I believe this works... A rising tide lifts all boats.
Problem is people will play the envy card... Saying that it's not fair that the rich profit so much. If you give it time, everyone will be better off. But if you focus on envy and jealousy because people are rich, then you cut off the source before the resources start trickling.
It's the theory that if you allow the upper end of the income earners to be free and be productive with their money, their economic activity would benefit all classes as they hired people or spent money on other businesses. The money starts at the top and trickles down to all classes and all are better off.
I believe this works... A rising tide lifts all boats.
Problem is people will play the envy card... Saying that it's not fair that the rich profit so much. If you give it time, everyone will be better off. But if you focus on envy and jealousy because people are rich, then you cut off the source before the resources start trickling.
Trickle down does work with Government. Why do you think they have special tax breaks where everyone gets a check for $500. Why do you think they start printing money to hand out to unemployment? Why do you think they talk about spending money on infrastructure? The more the government spends the more the public will spend. This keeps the economy moving.
That being said, I totally disagree with big government. Smaller is better to allow the tax dollars to stay in the pocket of the individual. They will still spend it and keep the economy moving.
It's the theory that if you allow the upper end of the income earners to be free and be productive with their money, their economic activity would benefit all classes as they hired people or spent money on other businesses. The money starts at the top and trickles down to all classes and all are better off.
I believe this works... A rising tide lifts all boats.
Problem is people will play the envy card... Saying that it's not fair that the rich profit so much. If you give it time, everyone will be better off. But if you focus on envy and jealousy because people are rich, then you cut off the source before the resources start trickling.
exactly right!! cut taxes and regulations, and businesses start making money, and the economy starts to turn around, the last thing that happens is jobs are created in large numbers. but in the mean time, the entrepreneurs are going to start their own businesses, and as they become successful, they start to hire people, and this os where the job growth comes from, small business. hamper them and you hamper job growth.
Trickle down does work with Government. Why do you think they have special tax breaks where everyone gets a check for $500. Why do you think they start printing money to hand out to unemployment? Why do you think they talk about spending money on infrastructure? The more the government spends the more the public will spend. This keeps the economy moving.
That being said, I totally disagree with big government. Smaller is better to allow the tax dollars to stay in the pocket of the individual. They will still spend it and keep the economy moving.
thats not trickle down, but rather trickle up, and it is a recipe for fiscal disaster.
Trickle down does work with Government. Why do you think they have special tax breaks where everyone gets a check for $500. Why do you think they start printing money to hand out to unemployment? Why do you think they talk about spending money on infrastructure? The more the government spends the more the public will spend. This keeps the economy moving.
That being said, I totally disagree with big government. Smaller is better to allow the tax dollars to stay in the pocket of the individual. They will still spend it and keep the economy moving.
Giving money to others thru government is not trickle down economics. It's redistribution. Trickle down is a natural flow of resources thru productive behavior and spending money.
Money flowing thru government is not natural flow of resources. They produce nothing.
Giving money to others thru government is not trickle down economics. It's redistribution. Trickle down is a natural flow of resources thru productive behavior and spending money.
Money flowing thru government is not natural flow of resources. They produce nothing.
But what happens if trickle down has too little revenue for a giant government?
But what happens if trickle down has too little revenue for a giant government?
Government needs to shrink.
Think about it. In trickle down, the resources flow from the high income earners to the lower classes just through normal life - running a business, spending money on needs and wants, etc.
Government siphons off the resources so that the flow does not reach the lower classes directly through natural means. Through time, government has siphoned off more and more resources from the high end so that nothing reaches the lower classes through natural means. The resources to the lower class now comes from the mechanism of government.
Some would say what's wrong with that? Well when the resources flow naturally, there is freedom, there is people earning money and spending it as they please, and there is growth. Through government, you get resources under certain circumstances. You must be unemployed. Or you get tax credits for buying an electric car. There's no freedom in that. Instead of resources flowing freely, government steers resources to certain people.
So to answer your question, the siphon of government must be reduced. If the trickle is too slow, the resources don't flow, and the lower class suffers. The mistake people make is thinking that government is the SOURCE - when that is not the case. The people are the source. Government has inserted itself into the process and is stealing and siphoning off resources for its own purposes.
Trick Down Economics is 1million% bs no matter what the size of government is it is the biggest lie the GOP has told the last 30 yrs
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