Rising Tide Economics

by Mr. Universe

Trickle down economics. Reagan made this phrase famous. The idea being that if you give those with the money the tax breaks it would give them the means to create more jobs and, ergo, bolster the economy. There’s just one problem with that: it presumes that those rich folks will do their altruistic duty and create new jobs. Well, surprise! They don’t, actually.

Turns out that they take the money and run (or hide, to be more accurate). And it doesn’t improve the economy. In fact, it creates a demand for high dollar goods and services rather than manufacturing jobs which companies ship overseas. Jets, yachts, RVs, etc. Things only available to the top 2% of Americans. I can confirm this since many of the RV manufacturers locate to Oregon as a tax haven as a result of the lack of a sales tax here. The rich keep their planes here for six months so they can be declared ‘local’ and exempt. You get the idea.

So now the Republicans want to extend the Bush tax cuts which are set to expire next year. How’s that campaign message workin’ for ya?

This is the height of insult. I cannot believe there is a middle class American out there; Democrat or Republican, who is willing to be fooled again. When the Republicans writhe in agony over redistribution of wealth they fail to mention that this has been happening ever since the Reagan years. Yeah there is a redistribution going on; in the wrong direction. The rich got a 10 year holiday from taxes. No more. It’s time to pull your weight in this economic crisis. As Sarah Palin says; “Buck up!”. This is the decade  (century) of the middle class. WE CAN DO IT!

It’s time to try ‘Rising Tide Economics’. In other words, a ‘rising tide floats all boats’. Or ‘when the train comes in, everybody rides’. America thrives on the power of numbers. There are greater numbers of middle class than ever before and it’s time to give them a chance at bat. Give small businesses capital. Give entrepreneurs the same. Let municipalities rebuild infrastructure and hire people to build their bridges, highways, and other public facilities. Heck, bring back the CCC.

Let’s get to work!


About Mr. Universe

Mr. Universe is a musician/songwriter and an ex-patriot of the south. He currently lives and teaches at a University in the Pacific Northwest. He is a long distance hiker who has hiked the Appalachian Trail and the Pacific Crest Trail. He is also an author and woodworker. An outspoken political voice, he takes a decidedly liberal stance in politics.
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9 Responses to Rising Tide Economics

  1. WA7th says:

    Or… Bootstraps is Bullshit!(One suggestion to Mr U: the “back to main page” takes the user back to the blog main page. Just my opinion, but I think it should link to your welcome screen at http://www.538refugees.com.)

  2. WA7th says:

    Or suggestion to Mono. Sorry.

  3. Bart DePalma says:

    Mono:You only cover half the equation.Supply side is based upon the basic economic proposition that the more you tax something, the less of that something you get. In this case, penalizing wealth creation means you get less wealth creation. You folks on the left argue the same thing when it comes to excise taxes on items or activities with which you disapprove.However, business owners will not invest their after tax money in business growth unless the business environment is favorable. The Obama Administration is hell bent on increasing overhead and the cost of labor through Obamacare, card check, credit regulations and a looming massive increase in energy costs under EPA’s new global warming regime.Bottom line: You would be better off holding a 1933 style capital strike and buying gold.

  4. filistro says:

    Re taxes… are Dems going to cave on this, or are they going to hold firm?Talk about an angry electorate… if the Blue Dogs force the Dems to extend that top-bracket tax break, I fear a massive rebellion amongst rank-and-file Dems who have stuck with the President through everything so far but will see this as simply a bridge too far.What are they so AFRAID of? Only 28% of the entire country wants to see those tax cuts extended in their entirety. So where’s the risk…. Republicans might get mad? Well, they could hardly be madder than they already are, could they? Nowadays now the Goopers make wet hens look calm and reasonable.

  5. Mr. Universe says:

    Thanks! I’m working on making the site more user friendly. Your suggestions are helpful. I just can’t guarantee that I’m smart enough to implement them quickly.

  6. Bart DePalma says:

    filistro:If you poll the question whether you support increasing anyone’s taxes during a recession, support for tax increases craters.This is why the GOP keeps quoting Obama last year admitting that raising taxes on anyone during a recession is a bad idea.The roughly 110 endangered House Dems and 13 endangered Senate Dems can hardly afford to give the GOP more commercial fodder for their tax and spend attacks.

  7. Mr Universe says:

    Bart,That’s actually my article. I need to fix the “posted by” feature. Welcome to the new playground.I’m planning an article on the ‘global warming regime’ pretty soon. That’s my speciality.

  8. Number Seven says:

    Enough with the talking point about ‘penalizing wealth’. Reaganomics penalizes the middle class by stagnating wages and demonizing unions. Wealth is created by LABOR (entrepreneurship), not WEALTH (capitalism).Bart wants to believe if only workers would work for what Chinese workers work for, then the jobs would magically stay here. That is bull shit because there are a hundred other countries out there with even lower wages.Please take the time to look up ‘The Two Santa Theory’. It perfectly explains what the Public Con strategy has been over the last thirty years. Even the person who invented the term ‘supply side economics’ and ‘The Two Santa Theory’, Jude Wanniski denounced Bush for being an imperialist and realized his mistake in believing in this reverse socialism when he wrote his last paper, Neo-conned!Bart, be the first one to volunteer for your solution by dropping your cost of labor by 4/5ths. Put your money, your wealth, where your mouth is. I dare you, I double dog dare you.

  9. Number Seven says:

    Sorry if this posts twice, still getting used to this new system.Enough with the talking point about ‘penalizing wealth’. Reaganomics penalizes the middle class by stagnating wages and demonizing unions. Wealth is created by LABOR (entrepreneurship), not WEALTH (capitalism).Bart wants to believe if only workers would work for what Chinese workers work for, then the jobs would magically stay here. That is bull shit because there are a hundred other countries out there with even lower wages.Please take the time to look up ‘The Two Santa Theory’. It perfectly explains what the Public Con strategy has been over the last thirty years. Even the person who invented the term ‘supply side economics’ and ‘The Two Santa Theory’, Jude Wanniski denounced Bush for being an imperialist and realized his mistake in believing in this reverse socialism when he wrote his last paper, Neo-conned!Bart, be the first one to volunteer for your solution by dropping your cost of labor by 4/5ths. Put your money, your wealth, where your mouth is. I dare you, I double dog dare you.

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