Trickle Down Economics is possibly our Nation's biggest political scam consistently perpetrated on American voters and taxpayers.
Here’s the theory: Cut taxes for big corporations and the rich, in turn, they will take that money and create jobs to stimulate the US economy.
Here’s the reality: The super rich and big business hoards the tax cuts for themselves.
In a testiment to concentrated economic and political power in the US, 90% of tax cuts for the rich are held in passive accounts that have NO effect national job creation or growing the wealth of middle and lower income Americans. In harsher terms, elites seem to only care about the financial health of middle and lower class Americans when they can use or manipulate the latter's anger and votes.
President-elect Donald Trump is a perfect example of the recycled elite "Trickle Down" politician. During his campaign, Trump chastised Hillary Clinton for taking huge amounts of money from Goldman Sachs. Less than a month after winning the Electoral College, Trump appoints an ex-Goldman Sachs executve and housing foreclosure specialist. Then, almost immediately, he appoints a billionaire ex-Goldman Sachs hedge fund crony to the position of US Commerce Secretary.
It looks like the "evil swamp" Trump was campaigning against was drained and he found some of his Cabinet members at the bottom!
History shows during every election cycle how politicians have no qualms about blatantly lying to voters over how much they care about putting money back in average American’s pockets. These false campaign slogans end up being nothing more than bogus political promises that dupe voters into electing them - and hope that by the next election cycle voters will forgot how they were duped the last time.
Given the current state of the US economy, Trickle Down policies are once again the free market "hope and change" economics. Yet, the national politicians, primarily market fundamentalist ideologues like Paul Ryan (and now Trump), continue to preach this false hope "elite saviour" faith.
We are just now starting to recover from the great recession in 2008 caused by irresponsible deregulation and "Trickle Down" economics, yet here we are at it again with the new Trump version of this failed economic theory. "Insanity" is doing something that doesn't work over and over again expecting a different outcome.
The Kansas Failure
We can see the inherent failings of "Trickle Down" at the state level. in 2010, Kansas elected a Tea Party true believer to be their governor. He promised during his campaign that by slashing taxes for businesses and the State's elites, everyone in Kansas would benefit. After being elected into office and then having a Republican assembly and senate, the Governor signed off on the biggest tax cut in the state’s history.
The result: Ninety percent of those tax cuts in Kansas benefited the top 10 percent of earners: the rich. The Kansas economic experiment failed miserably and since the cuts, Kansas has faced yearly budget deficits and was sued for its lack of funding for public education.
By June of 2014, the results of Brownback’s economic reforms began to come in, and they weren’t pretty. During the first fiscal year that his plan was in operation, which ended in June, the tax cuts had produced a staggering loss in revenue—$687.9 million, or 10.84 percent.
According to the nonpartisan Kansas Legislative Research Department, the state now risks running deficits through fiscal year 2019. Moody’s downgraded the state’s credit rating from AA1 to AA2; Standard & Poor’s followed suit, which will increase the state’s borrowing costs and further enlarge its deficit.
Yet in spite of the massive negative evidence, Now Donald Trump wants to double down on "Trickle Down" nationally, an economic policy that primarily benefits the major benefactors of the elite ownership of wealth and power.
Viewing the proposed Trump economic plan objectively, it does look like we are experiencing a Trump honeymoon stock market rally - for a few months - mainly because of "business friendly" domestic banking and fossil fuel deregulation proposals. Over time, once the protectionist Trump Administration economic policies get fully implemented, only then will we see the real positive or negative effects of the "Trumpnomics" version of the "Trickle Down" philosophy on the US and global economies.