Economics is a science. It isn’t like a palm or horoscope reading. Just like chemistry and biology their are proven facts. Basically, the study of economics is about our behavior with resources as individuals and how markets operate and are effected as a result. Don’t let it intimidate you. Simply put, its how money makes the world go around
Politicians lie about economics all the time. Most of the lies go without a single question. You can look up facts on economics just like animal training, medication or history. Once again economics is a science.
Put this in the test tube. Why is half of America broke? More than half of Americans live from pay check to paycheck and do not have an extra 400 dollars for emergencies. Hopefully, they have a credit card that’s not tapped out. ( Google it-half of America is broke ).
Since, the Reagan administration the main belief in the US about the economy is that if the rich have more money they invest more and jobs are created. So it’s a good thing to give the rich money in the form of tax cuts etc. This is what they call, “the trickle down theory”.
The “trickle down theory” has NOT worked as far as lifting up the middle class or the poor. It has made the rich richer. It seems money has been sent to the top never to be seen again.
The rich have become so rich they are saving more and more of their extra money and even taking money to invest in growing markets in other counties. That means the trickle has gone from quarters to pennies to urine.
What does it take to get the economy healthy that is people working and bettering their lives. This is what has been tried and works. Stimulating the economy from the bottom the lower the better is the most effective. Instead of a tax cuts for the rich increase food stamps benefits, public assistance, social security payments etc. That’s right, there is more bang for the buck stimulating the economy by helping the poorest in the economy!!
Let’s say 1000 poor people like students, senior citizens split 1,000,000 through an increase in benefits etc. You know what happens? It gets spent up on food, rebuilding the back stairs, gasoline, diapers, and yes some goes on beer. The money spent stays in the country and no money is saved. The poorer the person the less they can save. The economy gets a huge hit of money. People are working to produce and sell lumber for home projects like back stairs, diapers for babies and lots of beer has to be brewed.
In other words,the economy is buzzing. The facts are that “hand outs” as some call it increase or get the economy buzzing at the same time tax revenues go up!! We do not go broke with this solution at all.
For example for every dollar we invest in education 7 dollars come back into the country through taxes. Investing in people is a proven way to grow jobs and help people move from poverty to middle class. Some well intentioned leaders can’t seem to explain this at all. It’s frustrating as hell. Let me try.
If the same 1,000,000 dollars goes to one rich person in the form of a new tax break it’s less likely to go back to the economy. The back stairs on all the houses owned have been well maintained, and there are so many diapers and beer one family can use even if they’re wealthy. The tax break most likely goes into the bank. A bank at the Cayman Island would be best.
Here is another thing since we are doing some truthing ; businesses do not increase their workforce or infrastructure because of tax breaks. That’s not how business or the markets work.
Ask a business owner like my kid sister, “say, when you get a tax break do you hire a few more workers and buy some new office machines?” She’ll tell you “no way, I hire and buy more things for the business when I get more people buying my consultations”.
It’s hard to explain her business so I’ll change to a business everybody can understand…. Donuts.
If people start buying your donuts and you can’t keep up you buy more ovens and hire more donut makers. If donut sales stay the same as the donut shop owner you may save the money from the tax return for an emergency or take a vacation.
Most people believe lies about the economy because we’ve been lied to for about 40 years. I would describe us as Americans to be brainwashed….. No shit.
1. How has “trickle down ” worked since its start in the Reagan Administration?
2. Do tax breaks for the rich stimulate an economy?
3. Do an increase in benefit programs stimulate the economy?
4. Do increase tax breaks cause business owners to invest and hire?
5. What’s the break down of return in tax revenue for tax cuts for the rich as opposed to increase in benefits for the poor?
So the fact is helping the poor ( the poorer the better ) helps everyone. Helping the rich mostly helps that particular individual and this is more true the richer the person is.
The only ones that get hurt if we lift up the economy the smart effective way is the ones who ……..envious. Face it. Can’t you hear it now!
You mean BLANK type people who are poor the real BLANKY ones get to drink beer!!!!
You know it Pres. Trump is going to jump in and help spin up the lies and get the envy boiling. We have to be knowledgeable enough to stop lies dead in its tracks. This murder is best done in public. We are gonna have to stop and question racism especially when to do so would be rude. Its about democracy and if we have the balls to keep it.
“Free your mind and the rest will follow” someone wrote that or sang it.
The Mexican from Mars