Why do trickle down economics always lead to a recession?

Question

...caused by targeted inflation and huge deficits, resulting in a devalued dollar.

Answer 1

Because they are one sided. The very term trickle down is a misnomer. Nothing trickles down past the CEO. It stays at the top and those in the middle class and poverty class are the ones who ultimately suffer while the rich get richer. As Bush puts it, they want an 'ownership' society. If you research the meaning of this term and way of thinking, it is straight out of the antibellem south that it originates (no surprises there). Basically, those who own rule. It is another way of thinking and saying that what they really want is another Plantation economy. Those who own the majority of resources and capital rule and have say over those who don't. In other words, the economy becomes completely at odds with the system of government of by the people, for the people and of the people, democracy.
Trickle down economics will never ever work.

Answer 2

It doesn't always. Any tax cut, whether it's the top brackets or the middle brackets, must be followed by government spending cuts. If it is, the economy benefits and prices actually come down. But, when prices come down and the dollar increases in value, our international trade and economy can also suffer.
Fiscal policy, particularly where tax cuts and increases are involve, is a delicate balancing act. Too much either way can cause bad results.
Since 1971, the international oil trade replaced gold as the standard of the dollar. That's why it seems only gas prices are being effected by inflation or devaluation of the dollar today. High gas prices have nothing to do with oil companies gouging prices. International crude prices increased because the Bush administration has pumped $9 trillion of worthless money into circulation. This deficit spending has diluted the dollar, which requires more dollars to buy oil.
Bush's tax cuts may have created additional tax revenue, but it didn't create enough. His spending outpaced the benefit.

Answer 3

you have it backwards. Keynesian economics, government intervention, reason bubbles. while the government artificially inflates call for for an merchandise or type by using subsidizing it, this will boost the fee over the truthful industry fee. while the subsidy is taken away and/or the economic equipment corrects itself, those bubbles burst inflicting better discomfort. long-term, the industry, untouched by using government is the main suitable. Trickle down economics ties into our corrupt tax equipment and is utilized by using the two Democrats and Republicans. Obama is using trickle down economics now with the stimulus by using throwing a ton of money into Union corporation believing this injection will create long term era call for. short while era, he's barely pumping up one sector of the economic equipment on the cost of something. in the long-term while the invoice comes due, the bubble will burst. pass to the truthful tax and save government out of ways by using removing regulations, code, licenses in any respect tiers and watch usa advance.

Answer 4

Gosh you've been listening to the Major Network Under reported miss reported information.

Today we have Lower Unemployment than anytime during Bubba Clinton's time. Lower Interest rates than anytime in 40 some years. Lowest Inflation Rate and so forth.

And Yet Little or no one is reporting the fact that in the 1970's we were in the Woes of Global Cooling when not a Animal, Humane or Plant would survive. How soon we forget.

Answer 5

It's because the nations wealth is trapped in the hands of the most wealthy. And for the nation to prosper we must be dependent on the wealthy to spend the money gained from the tax incentives they receive. Thus the term "trickle down."

Answer 6

Because they have never trickled down far enough or fast enough... and now it just trickles out of the economy all together. Capitalism and it's quest for ever cheaper labor has flung far our American corporations to the point where that money is now being globally circulated.

Answer 7

Because there is no real incentive to trickle down, low labor costs equal higher profit. It also means less money for the people who buy the most products.

Answer 8

It only leads to a recession for the middle class.

The trickelee get all the $$$ while the tricklier get the tax break.

Go big Red Go

Answer 9

I'm still waiting for Ronald Reagan's economics to trickle. This was the biggest lie in history told by the historians in all the Civic books.

Answer 10

TDE is short for "the rich get richer and the poor get poorer"

Every major lawmaker in Congress either comes from great family wealth or has been a very successful business person.

Those guys don't care what the rest of us do as long as we shutup and provide most of the tax dollars.