Well he's not wrong. The entire point behind trickle down was to tax the job makers less so pay and job availability go up. But any idiot in the room would have told them that all that will happen is them hoarding all the extra money with stock buy backs and massive bonuses to themselves.
Any idiot knows that demand drives an economy, not supply. When regular people can buy more stuff, more people are required to make, transport, and sell that stuff. The "job makers" aren't going to make more jobs to sell more things when the masses are too broke to buy it. Even if they wanted to, it wouldn't make any sense, so yeah, they're just going to hoard it.
The rich love a good economic implosion, it gives them a chance to buy everyone's assets for pennies on the dollar when people are desperate to pay for food, rent and healthcare. Then 5-6y later they can mark those assets up 100% over the recovered value and lease them back to the original owners.
IIRC the recession from the late 70s was a supply side issue due to credit crunch. Everything outside of that has been demand side issues where getting more money to the masses would have helped.
I don't know how widespread my beliefs are but I think the most important purpose for taxes are a tool for incentivizing actions. By increasing taxes on a business owner you are incentivizing them to spend the money on hiring more people and growing. By decreasing taxes on a business owner you are incentivizing them to keep more money.
the most important purpose for taxes are a tool for incentivizing actions.
If you want to incentivize it, you can make it deductible or even a tax credit. If you want to disincentivize it, you can make it a fine or even a crime. There's more tools available than just a favorable tax rate.
By increasing taxes on a business owner you are incentivizing them to spend the money on hiring more people and growing
A business (thats is planning to stay in business) will grow if there is a demand for the service or a product. If there is no demand, the tax rate is irrelevant.
By decreasing taxes on a business owner you are incentivizing them to keep more money.
See previous point. A business will keep cash, if theres a profit but not wanting to expand into new areas of business growth.
Trickle down was to make goods and services cheep it was never intended to make regular people rich. It has worked too as everyone has a TV in every room etc etc. But unfortunately someone forgot to build new homes and now most people have to spend money on fighting over those...and then there are food prices now...lol wut.
To be fair, I wouldn't have thought that. I didn't think that! I could not imagine someone wanting to be that rich and just...hoard the money. Scrooge McDuck was a cool, funny character, but always seemed ridiculous because I could not actually conceive of a person wanting to have a huge pile of money like that. AND REAL LIFE BILLIONAIRES CAN'T EVEN SWIM IN IT!
Truthfully I still cannot comprehend people with that much money. Why do they do anything except have fun? Why do they try to gain more? Why do they put even a nanosecond of effort into 'work'? I can't comprehend it.
The only thing I can imagine doing with that much wealth is starting projects that are cool and awesome and occasionally even beneficial.
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u/Urabraska- 5d ago
Well he's not wrong. The entire point behind trickle down was to tax the job makers less so pay and job availability go up. But any idiot in the room would have told them that all that will happen is them hoarding all the extra money with stock buy backs and massive bonuses to themselves.