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Wednesday, August 22, 2012

Trickle Down Theory...One Last Time...Hopefully!!!

They are at it again.  Cut the taxes on the richest of the rich and the corporations and they will spend their riches creating new jobs, and the resulting wealth will trickle down to the rest of us.

A quick review is in order here.  Jack Kemp, then a Congressman had lunch with Arther Laffer, then an economist.  The story is that Laffer drew a curve on a napkin to promote the theory that tax cuts for the rich produce economic growth and new jobs.  That curve will forever be know as the Laffer Curve.  Of course, the joke here is unintended.

So here is your assignment.  Take a look at corporate profits.  They are high as they have ever been.  Corporations are sitting on record amounts of cash and have been doing so for a number of years now. (Update: Business Week, Oct. 15, 2012, "Corporations are Sitting on $1.7 TRILLION in cash.)

The 1% now have more money than they have ever had and their share of the wealth of the country is staggering. (Update:  that is now 40% of ALL the wealth in the country.)

So where are all the new jobs that should have been trickling down to us since, oh say, the Bush tax cuts?????????????

Even Mitt says that 23 million Americans are unemployed or under-employed, and nothing much has changed for five years now.  Record numbers of people have been unemployed for over a year now.

And yet there are still fools in Washington trying to sell us the Laffer Curve!!  It is indeed a Laugh Curve, but the results ain't funny.  Tell them to stop trying to fool you.  It ain't pretty!!

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