What is “Trickle-Down Economics,” and Does it Work?

Op-ed by TheWiseOldFart

In 1981 Ronald Reagan created a fiscal polity he titled, “Supply Side Economics.” It quickly became known as “Trickle-Down Economics.” His eight years in office were dominated by high unemployment rates and huge increases in the national debt.

Unfortunately, his three Republican successors failed to learn from his mistakes and used the same policy. The result was, in 1992, Bill Clinton rescued Reagan and George H.W. Bush: In 2008, Barack Obama saved our economy from the failures of George W. Bush: and in 2020, Joe Biden prevented another Great Depression after the disastrous incompetence of Donald John Trump.

WHAT IS “TRICKLE-DOWN ECONOMICS”

The simplest definition of “trickle-down economics” is that it is based on an illusion. Republicans continue to offer a baseless claim that if the wealthiest Americans receive tax cuts and thrive, jobs will be created, and the overall economy will grow exponentially.

Experience proves this theory is invalid beyond a reasonable doubt. In reality, unemployment grows and the national debt has increased to more than 35 trillion dollars. That’s right “trillion” with a “T.” No one can possibly understand how much money that is, but here it is with all the zeroes: $35,000,000,000,000.

IT IS FAIR TO SAY THAT MOST OF OUR NATION’S BILLIONAIRES ARE NOT TRUE AMERICANS

There are currently 813 billionaires in the United States. The vast majority of these men and women are greedy, and have no interest in the future of their country, because the people are what defines America, they are of no interest to the super-rich. They do not possess American values.

I can talk about this because I have seen great change in my 78 years. In 2024, there are 813 billionaires in America, and more than 22 million millionaires. However, one-half of all 330+ million Americans live in poverty or in the low-income bracket. And the gap continues to grow, making income inequality one of the top five major problems in our country.

OUR NATION’S MAJOR PROBLEMS COULD BE FIXED IF THE SUPER-RICH AND CORPORATIONS PAID THEIR FAIR SHARE OF TAXES

Think about this: the United States Tax Code contains 6,781 pages. The majority of the document offers information about how to avoid paying taxes. With the maximum tax rate at 37 percent, which no one pays, and the corporate tax rate 21 percent, down from 35 percent in 2017 when Trump and a Republican dominated congress greatly reduced the maximum. the result was that in 2018 corporate giants including Walmart and Amazon paid zero dollars in taxes.

TAXES ARE A MUST IN A FREE SOCIETY

Democratic nations cannot survive without fair taxation, and in the United States fairness is not in the equation. If every American and every American corporation paid their fair share, everything necessary to improve the lives of all Americans would be affordable. Universal Healthcare, free or low-cost education, guaranteed vacations and family leave, and programs to educate workers who lost their good-paying jobs through outsourcing would be available to anyone who wanted them.

Without fair taxation, the national debt will continue to grow, and programs needed for the majority will become less and less available.

Canada’s maximum tax rate is 33 percent but offers few deductions. In the United Kingdom, it is 45 percent. In Italy the rate is 43 percent. In France, the rate is 45 percent.

Our politicians claim that America is the wealthiest nation in the world. Let’s prove them right and pay our bills and at the same time take care of our people.

We must do better, and that begins with the tax code. Let’s reduce the number of pages by 90 percent, and simplify the process while making it fair for everyone.

Op-ed by James Turnage

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Source: https://www.faireconomy.org/trickle_down_economics_four_reasons