Trickle Down Economics
With the Federal Tax Bill and the National Debt now major news topics, a phrase that has been bantered around for about 40 years called “Trickle Down Economics” is commonly being mentioned. It is one of the most misunderstood “tag lines” used to describe modern day economics. The application of this misunderstanding continues to infect the thinking of the liberal agenda. It is most often used to impugn economic policies that are thought to be unfair, self servicing, pro-business and hurting the poor.
The sad reality is, anyone that says Trickle Down Economics does not work, knows nothing about capitalism, economics or the function of government. In contrast to this misunderstanding, words that describe the exact opposite of Trickle Down Economics are socialism, communism, the welfare state and social justice.
Trickle Down Economics simply means the business cycle of making things and providing services that people want and selling them for more than the expense of production. When that transaction happens, that money is used to pay their workers and for supplies used to make that product or service. Of course, that amount received must always be more than the cost to make it. If that cost is higher than what the customer paid, nothing trickles down and that business must eventually stop because the owner will go broke. This is simply what Trickle Down Economic is.
Those who profess that trickle down economics does not work actually advocate that businesses should not make a profit with everyone working for nothing and receiving all their assistance from their government who owns all the businesses and resources. This is slavery without the whips. When the government owns all the businesses, this is what Nationalization means with Cuba a prime example. The bureaucracy of the government, redistributes all the money as they see fit. It is an endless cycle where no one gets ahead, except the bureaucrats. This is socialism which leads to communism which eventually becomes a dictatorship where the citizens are forced to work under a system where everyone is equally miserable. This is the perfect definition of slavery with a whip.
The consequences of this thinking is the ideal propaganda message of the liberal agenda. It is used to stop any attempt at tax cuts and budget control. Trickle down undermines their socialist agenda. All businesses must pay their bills with money received from their customers. If businesses are taxed, customers will be paying more for the product because of the tax that is always passed through to the end user. If taxes are cut or eliminate for businesses, they have lower costs and more profits to expand and hire more employees. Tax revenues will increase because more people are working. The lower the tax, the faster trickle down happens and there will be more tax dollars coming in, sooner, to pay for the service we all expect from our government. Government’s job is to not expand the welfare rolls and not to find more victims who will vote for them.
Often the excuse to not cut taxes is because they feel it will raise the deficit. The government must learn to spend less and live on the supply side of the economy and not raise taxes to pay for their pet projects. This means that if the government does not have the money, they must cut back on something…..one should never borrow money to go on a vacation. All this is trickle down. It is important for the liberal agenda to have everyone believe that trickle down doesn’t work, because it validates the propaganda needed for them to find more victims who will vote for them and their socialistic ideas.
So the next time one hears that trickle down does not work, put your hand on your wallet because they are trying to take it from you to buy votes and run everyone’s life because they consider you too stupid to do it for yourself and they do not want our government to run anything like a business.
This is Keith Kube wishing you the best in making the world a better place.
Keith Kube, of Crofton, is a business analyst and author of two books on business management. The books are available at the Elkhorn Valley Museum, Norfolk City Library, Norfolk High School, Norfolk Catholic, Northeast Community College and Amazon.
During his career as an engineer, investment banker and business analyst he identified traits commonly overlook that are vital for all successful business operations and government. You can hear all his past editorials or review his books by going to his website: www.keithkube.com