Tuesday, February 12

Where did logic go?

       It is so logical it makes Mr Spock look like an idiot. A capitalist economy depends on the Rich. Plain and simple. The 'rich' be it corporate or other, make more money, the company grows, and more workers are needed to meet deadlines and production. The 'rich' then look to the 'not so rich' to help attain that goal. Yes, the rich do get richer, but in doing so help to employ and the 'poor' get richer. The 'poor', are no long poor and do help to "feed" the economy. Ronald Reagan understood this and thus "created" Trickledown economics. He really didn't create this, he just had the sense to use it. America had a booming, thriving economy. 
      Now I have recently read an article that did state, with facts to back the statement "The 5 worst years since the Great Depression."

       Some parts of this article were a bit confusing to me but I would guess that's why I am not an economist. I was able to make sense of the ebb and flow of the economy. Sometimes up and sometimes down, but the greater the down, the greater the up when recovery is taking place. 
      My take on all this? Nothing is fair, and the more you do to make it fair will not solve the problem. The economy does not come with a promise that everyone will be rich; a booming economy does however come with the promise that most will prosper. 

     Raising taxes leaves less money to be spent on the private sector, thus reducing business, fewer people needed to employ. The idea is not to raise taxes but rather raise the number of people paying taxes (employment). How in the world can you expect more taxes from fewer people? "Share the wealth" on a different level. 

1 comment:

Inspector Clouseau said...

For the most part, I agree with you about our economic governance model.

However, I think that there is something else which we should not ignore. We got fat and lazy as a people as our standard of living rose. We wanted to work less hours, vacation more, and pursue happiness. There are costs associated with not working 75-80 per week, particularly where there is global competition. We here in the States can not control how hungry our global competitors are, and what they are willing to do.