Trickle-Down Economics

8 Commentaries for 2/4/2009 #8

Trickle-down economics is the belief that by providing tax cuts to the rich, and to large businesses, those in the middle and lower classes will benefit. Throughout our history, trickle-down theory has gained favor with a certain class, can you guess which one?

Trickle-down theory tends to gain favor during the good times. It's a natural result of the greed of the many. It rose to favor into the 1890s and it took the progressive movement of the dawn of the 20th century to temper the excesses. It rose to favor in the 1920s, contributing to the Great Depression, and it took the New Deal and World War II to save us. It rose to favor again in the 1980s led by that most awful of Presidents, Ronald Reagan. The theory played a large part in the recession of 1991, the stock market bubble of the late 90s and the financial crisis that afflicts the country today.

At what point do we, as a nation, reject this theory for good? Again and again, Americans of the most modest of means fall for this hokum, as the many exploit the ignorance of the few. Even now, in the midst of a crisis whose cause lies in conservative economic theory, people are arguing for more trickle-down. May President Obama save us from this nonsense.