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Trickle Up Economics (12-22-2008)
About a month back, in response to the socialistic agenda of Obama, Glenn Beck was ranting that he had never heard of "trickle up" economics and had no clue how it would even work. Beck, along with Hannity, are in line with the model of Ronald Reagan's "Trickle Down Economics" where money flows from the rich to the poor.
Supporters of this economic philosophy point to how the rich create jobs and opportunities for everyone else. Indeed that is true. However, the rich stay rich by doing something very simple: they do not spend a very large percentage of their money.
Anyway, I firmly believe that this economy is based on Trickle Up economics. And the evidence is staring everyone in the face.
What evidence you might ask?
A tally of what is happening today:
#1. The rich are still rich. Bill Gates still has his 50+ billion dollars. Warren Buffet still has well over 40 billion. The Walden family is still insanely rich, with multiple members owning over 10 billion dollars each. The list of billionaires who are still billionaires goes on and on and on.
#2. The banks are still rich. Via the TARP bailout and a multitude of other lending programs directly from The Fed, banks in this country have been given hundreds of billions of dollars. Heck, it might be in the multi-trillion dollar range at this point.
#3. The recession is STILL in effect.
Now how can there still be a recession when the rich and the banks still have money?!? Afterall, this is a Trickle DOWN economy right!
Well...no, it's not.
You see, when the non-rich (aka, you and me and the other 100+ million hard working, under paid, under-appreciated slobs who make up the work force) curtail their spending, the economy goes down the drain. You see, Bill Gates can only own so many houses, buy so many cars, purchase so many christmas gifts, etc. etc. etc.. Warren Buffet - same thing. Walden Family - ditto. But 100 million people can buy a hell of a lot of gifts, cars, tvs, clothing, games...you get the picture.
So when those 100 million slow or completely stop their spending, the economy not only suffers, it comes damn close to collapsing. And yet the rich are still rich! The banks still have money! The upper crust of society is still well taken care of! And yet the economy stalls.
It stalls because it is absolutely dependent upon the non-rich. Trickle Down? If that made any sort of sense, then we wouldn't be in this mess. Trick Up? Makes you re-think Obama's "spreading the wealth" message.
This Rant Brought To You By Matthew T. Chernay
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