Wednesday, March 30, 2011

Trickle-up Economics

One standard conservative argument is that the wealthy are rich because they invest their money. The poor are that way because they spend their money.

The answer is thus to decrease taxes on the rich to stimulate the economy and increase employment.

Thirty years of trying have shown this not to work.

The problem is that the conclusion does not follow from the premise.

If we take the logical approach to this, we should increase taxes on the wealthy, and make sure that the lower-income folks get it. They will spend it, possibly in stupid ways, and thus stimulate local economies. Thus, more people get jobs, the government gets more tax revenue, and the corporations make even more money.

5 comments:

  1. Yes, the rich get richer, hasn't that always been the way.

    When a rich person is broke, they just print some more money.

    ReplyDelete
  2. I think it's all about arguing backwards from the conclusion one wants. And then ignoring logic when someone like you argues forwards from the premisses they've ended up with.

    ReplyDelete
  3. One standard conservative argument is that the wealthy are rich because they invest their money.

    Or maybe just a statement of the bleedin' obvious - neither conservative nor leftish.

    ReplyDelete
  4. Actually James, it ain't necessarily so. Think of all of those who inherit it, and just piddle it away.

    ReplyDelete
  5. More people get jobs, the government gets more tax revenue, and the corporations make even more money.memory foam mattress topper

    ReplyDelete

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