In 1980 the American public elected Ronald Reagan as president as he promised to usher in the era of Trickle-Down Economics. The concept is that if we give lots of money to the top economic layers of society, then some of it would “trickle down” to the rest of us. Presidential administrations have been following this ever since, including Clinton (who reappointed Alan Greenspan as Fed Chairman).
So my question to America is simple:
WHAT DID YOU EXPECT?
You voted multiple times for trickle-down economics why are you surprised you now have it?
When you look at the chart below (and pretty much all related charts), notice where the big rise in the red line begins? About 1982, 2 years into the Reagan Administration! This is an enormous redistribution of wealth! Something the right wing supposedly opposes.
Alan Greenspan was supposed to believe that the government should not intervene in the market economy. Yet he did it anyway. When and why? Whenever unemployment fell, Greenspan raised the interest rates to “cool down the economy. Effectively, he was restricting the ability of workers to improve wages. His reasoning was always “to combat the threat of inflation.” However, rising wages would not necessarily raise prices. In a competitive market, some businesses would choose to take the higher wages out of profits. This would have effectively distributed some of the profits, i.e. some of the new-found wealth to the workers. Of course the workers would have then spent on new products, services, etc. creating a more vibrant economy as well as a more just economy. In the end we all would have been better off, as this wealth made its way back into the system. Perhaps we would have fewer billionaires, and fewer multi-multi-millionaires, but overall we all would be better off.
Is this some kind of “trickle up theory“? I don’t know. But it seems that the those at the top are so greedy that they cannot abide any sharing at all.
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