Monday, June 27, 2005

Trickle down economics? More like stranglehold economics.

Conservatives love trickle down economics, and why wouldn't they, it means more money for them. But here's the thing, trickle down economics DOESN'T WORK.

Trickle down economics, for those who don't know, is when you give more money to rich people, and they in turn give more money to the people below them, it trickles down from the top. Although, thinking about it, trickle is a good word to use, because like a trickle the money SLOWLY flows from the top, if at all.

The problem with trickle down economics is that it requires rich people to give more money away, either through business ventures or through increased salaries.

Ok, when have you ever known a rich person willing to give away money? In fact, this whole trickle down nonsense is BECAUSE rich people don't like giving away money.

Trickle down economics should be renamed stranglehold economics, because what happens is that tax cuts to the rich mean less money for the state and local governments, which means those taxes go up hence your costs increase. Case in point, crossing the Verazano bridge is now nine dollars, NINE DOLLARS to cross the bridge from Brooklyn into Staten Island, and as anyone can tell you, who the hell wants to go to Staten Island?

So bush, cuts federal taxes to the top 1%, problem is that that 1% pays the most taxes, its fair, they take the most advantage of what this country has to offer, they should pay more. So the states now have less money, the local governments have less money, so property taxes go up to offset that lost revenue. Property taxes go up, landlords have to increase rent to offset those costs, local businesses have to increase their costs to offset the increase in rent. Suddenly you are paying more and more money for everything.

So since trickle down economics doesn't work, how about this... we need a catchy name for it, because the media can't sell a plan without a catchy name, how about pyramid economics.

The concept is simple, give more money to those at the bottom, they spend more, business makes more money, everyone's happy. Or how about "toll plaza" economics, where 8 lanes of toll booths merge into two lanes of highway.

So "toll plaza" economics will work, and rich people will get more money, yes they will pay more taxes, but in the end they will make more money... why?

Ok, give someone with less money, more, and they will buy more, say a DVD player. Well if more DVD players are sold, the companies profits go up. The company's profits go up, their stock price goes up. The stock price goes up, the company hires more people, and increases their profit margin. The profit margin goes up the company's president's bonus goes up.

Wow, so simple it might work right?!? Well duh, any child could tell you that more people spending more money means more money for people at the top, problem is, most rich people are racists and don't like to give their money to poor people and minorities through social programs, which are paid for by taxes.

Granted rich people take advantage of social programs too, do they not drink clean water, drive on roads, do they not want the police to protect them and the fire department to put out their fires? So they not want their garbage taken away instead of piling up in front of their house?

All of these things are social programs.

So, the point of all of this is "trickle down" economics is crap, rich people are racists, and "toll plaza" economics is the way to go.

Sounds simple to me.

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