The trickle-up theory of economics
by Matt Worley
Do you know what it means when someone pays you minimum wage? You know what your boss was trying to say? It's like, 'Hey, if I could pay you less, I would. But it's against the law.'
For over ten years, the so-called "job creators" have been getting their job creating tax breaks. And I have to say, I don't think the trickle down theory has proved correct. It seems like those people who own and run businesses have turned off the trickle down tap. If it was even running in the first place.
Watching CNBC in the morning before heading off to my job, I've heard at various times about how this is a consumer-driven economy. In other words, it's not the government who can create jobs. It's not the people running the business who are creating jobs. It's the people with jobs spending their money who create jobs. Those are the people who are paying for everything.
In other words, it's the 99%. It's everyone who makes money to survive. Who go to jobs they might not be excited about, but need the paycheck. We are the ones who drive this economy.
The "job creators" haven't been so generous since the Great Recession. They haven't wanted to hire. They haven't wanted to give raises. They haven't wanted to give bonuses. They are covering their own asses and leaving the rest of ours out in the rain.
And because they make their money because we spend ours, the cycle is getting worse.
They don't pay us enough. We don't spend enough. They don't make enough money. They don't hire more employees. They don't pay us enough. We don't spend enough. They don't make enough money. They don't hire more employees. And so it goes.
The Trickle Down theory of economics (called "voodoo economics" by the first President Bush before he got on the Reagan ticket) says it is the people with all the money who will bestow riches and grace unto the rest of us after they make enough money first.
But what happens when the people making the money at the top don't think they've made enough yet? They don't trickle anything down except their piss.
Those of us waiting for the trickle down don't have that option. We can't just sit on our "riches", because we have to pay for our shit. We have no choice. That money is going right back into the system.
Which is why this longstanding theory is actually backwards. It's Trickle Up. We are paying for the rich to be rich. We made them this way. We are the job creators.
If you gave a $5000 raise to every working person who makes less than $75,000 a year, the economy would turn around on a dime. Because all $5000 from each and every person would go directly back into the economy. It would be spent. And it would make everyone feel better.
Which would make those people at the top, who are apparently so worried and scared about the state of our economy and country, suddenly feel better, too. And they'll have to ramp up their production. And their hiring. And the circle of life goes around.
But if you gave $25,000 to everyone making $250,000 or more, you would see nothing change. That money would not go directly into making the economy grow. They would sit on it and wait for another sign. Because they've already been getting this tax bonus for over ten years, and it sure hasn't made them feel any better about trickling any of that down to us.
So the next time someone starts talking about the "job creators", say thank you. Because we're the ones who spend the money that keeps the stores open. They just own the keys to the store.
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