Can we justify "Trickle down" economics? (Macro)
In my opinion, "Trickle down" economics does not work. Never has worked and never will. Yet we hang on to the concept like it's the answer to all our economic ills.
I believe in "Trickle up" economics. I'll tell you why.
First 70% of our lovely economy is supported and stimulated by consumer purchases. Interestingly 40% of consumers are near broke. No money, no purchases which results in a slow economy and for those 40%, difficulty just surviving. Cut taxes for the general population and the money is "immediately spent" resulting in a need to reduce inventory, add manufacturing capicity and create jobs resulting in economic growth. Pretty simple actually. - "Trickle up?" Yes!!
Giving money to large corporations does nothing . . . why add to capacity when there is no increase in "demand"? Most of that money will be used to buy back stock or increase dividends. If you own a ton of stock that may help "you" but most folks (40%/45% ) can't afford to risk money in the stock market. - "Trickle Down?" No!!
There you go folks . . . New Year . . . New bone to pick.
(P.S. I am not a Communist or Socialist for hevens sake!)
Special Note! Gulliver just returned from Bangkok Thailand . . . don't miss this week's GULLIVERS TRAVELS!
Turntable - 50's . . . The flipside - The Pointer Sisters . . . GULLIVER'S TRAVELS - Bangkok Thailand! . . . The Club Pub - Tesla stock hits record as 2019 sales rise more than 50%
That's a wrap!
Till Next week / be safe &
I'll see you on the Turntable!