Is This a good example of how well trickle-down economics works?

Question

http://news.yahoo.com/s/ap/20070831/ap_on_go_pr_wh/bush_housing_slump

Isn't trickle-down economics equivalent to building the roof of the house, before you build the foundation?

Ah jack, So you are saying money spent into the economy by the middle class and lower, doesn't have as much or more of an impact as money hoarded by the affluent aye? That sounds sensible in a dreamworld kind of way.

Answer 1

Well considering the money given in tax breaks to the middle class and poor have a better chance of staying in our economy, than the money given as tax breaks to people who will use it to expand their labor force in communist countries, I would have to agree, that it is a good example of how well it works.
There is a reason companies compete for customers from the middle and lower class, and it isn't because they don't need their business to survive, as supporters of voodoo economics tend to forget.
When small business owners, employ about 70% of the labor force, aren't among the top 1%, voodoo economics isn't doing as good for the economy as using the same money to promote small business. All voodoo economics does it help big businesses wipe out the smaller ones.
I think the problem is, as the global market place expands, the views of our economy doesn't change and people who still believe in it, think these larger multinational corporations are somehow obligated to expand their labor force in America.

You can bet that once Bush helps these people with financal problems, the economy will show a bit of improvement that voodoo economics supporters will claim to be the result of tax breaks to large corporations.

Answer 2

Just the opposite.
The foundation of an economy is much like your own finances.
The smart move is to put as much money where it can make money as you can before you spend it.
You are confusing the people on the top of the economic ladder with the roof.

Answer 3

It's just an expression. You seem to be saying that the backbone of the American economy are the poor. They are not.

"Trickle down" is probably not the best way to put it. I' not even sure where the phrase came from, it may have been a derogatory term invented in the press. But it stuck.

Kennedy said the same thing basically, but he phrased it as "A rising tide lifts all boats."

The backbone of the American economy is investment and business. If we hamper these, we hamper everyone. That's just the way it is.

Love Jack

Answer 4

Trickle down economics only works for people who already have plenty of money. If you're barely surviving, the drip is torture.

Answer 5

No.

I earn it,I keep it,I spend it the way I want to,I get what I want,somebody built it,trucked it ,sold it and they got paid for their work .
Everybody benefits.

The lib way, I earn it ,they take it,give it a way to those who didn't earn it,who spend it on what they want.
Instead of getting a job.

Answer 6

Let's get a little more governmental influence involved here,you know, the true "Conservative" thing to do....(What's up with that ? )

Answer 7

No, it's the equivalent of allowing people to retain more of what they earn so that they can grow their businesses and employ more people.

Answer 8

NO!~!