“Trickle Down Economics” is possibly our Nation's most economically disasterous political scam consistently perpetrated on American voters and taxpayers.
Here’s the theory: Cut taxes for big corporations and the rich and they will take that saved tax money and reinvest in their businesses which create jobs to stimulate the US economy. The problem is: It’s mostly BS!
Here’s the reality: The rich and big business will mostly hoard the tax cuts for themselves. Or, they buy back company, which primarily rewards company executives and current stock shareholders. Or, they increase stock dividends in an attempt to keep current shareholders because either poor management or the supply and demand economy no longer supports the company’s growth.
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 on national job creation or growing the wealth of middle and lower income Americans.
In harsher terms, elites only care about the financial health of middle and lower class Americans when they can use or manipulate the latter's fear and anger to get 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 actually drained and he found most 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 “evangelicals” like Paul Ryan and Donald Trump), continue to preach this false hope "elite saviour" faith.
The stock market has certainly recovered from the great recession in 2008, which was caused by irresponsible deregulation and "Trickle Down" economics. Yet here we are at it again with the new Trump cabal version of this failed economic theory. "Insanity" is doing something that doesn't work over and over again expecting a different outcome.
We are in Kansas, Dorothy!
We can see the inherent failings of "Trickle Down" at the state level. Back 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 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, i.e. 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 Sam Brownback’s disasterous economic reforms 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 will run budget deficits through fiscal year 2019. Moody’s downgraded the state’s credit rating from AA1 to AA2; Standard & Poor’s followed suit. Such credit downgrades increase the state’s borrowing costs and further enlarge its deficit.
Yet in spite of the massive negative evidence of “Trickle Up“ fiscal policies, Donald Trump brags about doubling down on "Trickle Down" nationally, an economic policy that mainly inceases the wealth and consolidates the power of his elite kleptocrat cronies.
Viewing the proposed Trump economic plan objectively, it does look like we are experiencing a Trump stock market rally - going on for over a year now - mainly because of "business friendly" deregulation proposals tax cuts for the US plutocrac.
Make no mistake, once the Trump Administration economic policies get fully implemented, only then will we see the real negative effects of the "Trumpnomics" version of the "Trickle Down" philosophy on the US and global economies.
A predictio: The rich will be even richer and the rest of America will still be angry.