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January 8, 2014

The ‘Trickle-Down’ Lie

Let’s do something completely unexpected: Let’s stop and think.
Why would anyone advocate that we “give” something to A in hopes that it would trickle down to B? Why in the world would any sane person not give it to B and cut out the middleman? But all this is moot, because there was no trickle-down theory about giving something to anybody in the first place. The “trickle-down” theory cannot be found in even the most voluminous scholarly studies of economic theories — including J.A. Schumpeter’s monumental “History of Economic Analysis,” more than a thousand pages long and printed in very small type. Thomas Sowell HT: Morgan

Posted by gerardvanderleun at January 8, 2014 9:42 AM. This is an entry on the sideblog of American Digest: Check it out.

Your Say

The problem with the left's understanding of economics is that they presume their own scheme is the only way, and try to see alternatives through that filter. Supply Side economics isn't about giving anyone anything, its about letting people keep what they have earned and spending it how they choose.

The left seems to think that really rich people have a big vault like Scrooge McDuck and they swim around in their vast amount of coins and jewels once in a while. That their goods and supplies come from secret rich stores that only the rich buy and give things to, or grow on trees.

But rich people spend, and spend a lot. That mansion is full of things they bought from other people, the food they eat was grown by farms, the yacht they drive around in was built by workers, the servants they hire are just regular people, who in turn buy other stuff with they pay they get from the rich.

And that's the key part of the whole economic circle of life they do not seem to comprehend, or don't want to.

Posted by: Christopher Taylor at January 8, 2014 10:05 AM

So, one more thing, the term "trickle down economics", that can be attributed to childish LIEberals. These people are demonic and should be banished.

Posted by: ghostsniper at January 8, 2014 10:12 AM

Perhaps the moniker "trickle down" was unfortunate. But in the end all it is was the verbalization of a natural law where some people work harder (or are lucky) and gain more assets (or money) and choose to use/spend those assets to enjoy a better life and this spending provides jobs for the less fortunate/smart/hardworking who provide those things the better off choose to buy. This won't go away if we refuse to acknowledge it or call it something else and it won't go away if we were to go full blown socialism/communism. A rising tide does indeed lift all boats. People with more money spend/invest more money which in the end helps everyone.

Posted by: GoneWithTheWind at January 8, 2014 10:28 AM

When I see the phrase "trickle down" I always suspects somebody is peeing on someone from above.

Posted by: vanderleun at January 8, 2014 10:33 AM

People have been asked variations of the same question over a half century at least, and the question is this--would you prefer to be an economic equal in a society with limited but identical economic outcomes or to be a far wealthier individual in the bottom half of a rich society? For the great majority, the answer is unchanging.

Politics are easy in a democratic society if one has no scruple. You can even wear a Rolex while doing it.

Posted by: james wilson at January 8, 2014 11:31 AM

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