Can Bush's trickle down theory work?

Question

his means that if the wealthy have more money some will trickle down to the lower classes. I think that their greed will not allow that to happen.

I subscribe to the trickle up theory. If the lower classes have more money it will be spent on goods and services thus making the wealthy wealthier but the lower class lives will be better.

I didn't like Reagan either.

No Johnny. I would expect all workers to be paid a LIVING wage at the least.

Answer 1

Well, I think of it this way. If I have three really big funnels and I fill them with sand, the sand that trickles out only reaches a little area around the big funnel.
If I have 10 medium size funnels, and I pour sand into those, the sand that trickles out it is almost the same size as the really big funnel, but when it funnels out it is spread over a bigger area.
Now if I have 25 small funnels, and I pour sand into those funnels...they well have a smaller trickle of sand coming out of them, but the area they cover is even more than the really large funnel and the medium funnel.
So the question is...do we want many people to receive a smaller amount of money, or a few people to receive a large amount of money?

Answer 2

I agree!
Trickle down economics has never worked before, unless you are one of the wealthy and become wealthier. It certainly has created a smaller middle class and a much larger poor class.
Bush's tax refund to the American workers was also tried in the 70's. it has been proven that one time allotments of money will not help the economy to grow. People are more likely to not invest this small amount of cash and so economy stagnates. In order to have growth there needs to be fluidity of commerce.
The best times for economic growth have been while the middle class is being innovative, growing, spending and supplying the economy with fluid sources of money.
When that fluid source contracts, so too does the growth of the economy. We can not have a productive or prosperous economy if the middle class shrinks.

Answer 3

Actually... it's Reagan's "trickle-down" theory... and it worked great!

Exactly how do you propose to get more funds to the "lower class" as you put it? Shall we give them money? Do they have to work for it, or is it an entitlement? And either way, where does it come from? Should you tax those who work and earn money to provide for those who do not?

The absurdity of your argument is that the money is spent or invested either way, whether it is a "poor person" or a "rich person" who does the spending.

I'm all for finding a way to make sure that the lower classes have good jobs, food, education, health care, housing, etc... but what you propose is not the solution but is instead the problem.

Answer 4

I've seen it work first hand. My boss (the owner of a $50million company) didn't give out very much in bonus money the first few years I was here when the company wasn't doing well. When the company started doing well a few years ago, he started being much more generous with the bonus $$$. I'm sure there are a few that take advantage, but those are the exception, not the rule.

Answer 5

The trickle down theory only works if the businesses don't want to expand their business ventures. Then wages can increase (as a direct result of tax cuts, increased revenues due to greater demand), but most companies reinvest the wealth in themselves leaving nothing left for the workers but the status quo.

Answer 6

The trickle down theory simply means that the lower your class the more you get pi*sed on.

Answer 7

"Trickle up" was the idea behind Bush's $200 tax refund when he first took office.

It was nice, but $200 really isn't going to help me out much...nor anyone really. A month of gas, a couple weeks worth of food, that's it.

You can't buy some huge thing for that.

Answer 8

That's not Bush's theory. That was Regans theory. Didn't work when he said it either. Not a dime trickled down. All it did was increase the greed and take more away from the bottom.

Answer 9

How do you propose to put the wealth into the hands of the lower classes? By taxing the wealthy and redistributing their income?

Wealth redistribution is a Socialistic idea that has been shown to suppress growth and innovation.

BTW, you imply that "trickle down" takes money from "the poor" to give it to the "rich". Actually, it is simply allowing the "rich" to keep more of what they have earned by not hosing them with taxes.

Your idea is Socialistic and completely against the ideals this country was founded on.

Answer 10

Trickle down economics is not Bush's invention. It was used mostly in the 1980's under Reagan. It's offcial name is "supply-side" or more commonly "voo-doo" economics and it's believed to be a failure in most economic circles.