Taro (mother2012) wrote,
Taro
mother2012

Trickle Down

Trickle Down theory starts with the assumption that wealth moves from the wealthy to the poor.

Sheer nonsense!

Think about it. Who spends money?

Let's compare someone with an income of, say, $1,000,000 per year with someone who makes about $35,000. The working stiff spends nearly all of that income immediately. Probably more than 95%. Let's say $33,000. The rich guy probably spends $150,000. I don't know the statistics, but if you take a large population - perhaps a million people and multiply that $33,000 by 98% v the $150,000 by 2%, where is the money really?

Rich people do NOT give to the poor!

But what about companies? Doesn't money come from the big companies?

Hardly. If you've ever worked for a big company, you know they get the most they can out of each worker. Having more money does not change the number of employees. Having more customers does.

Where they really spend their money is on politicians, bribing them into believing that the American thing to do is make the wealthy wealthier.

True wealth comes from the production of goods and services. Those who make the country wealthy are those who farm, those who build houses, factory workers producing appliances, etc. The rich and powerful have forgotten whose shoulders they stand on.
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