trickle down in reverse

I’ve never understood how anyone can argue that trickle-down economics doesn’t work. Maybe it’s mis-named.

Maybe is should be holistic economics, because the entire premise really is that everything is related. We’re seeing that now, but in reverse.

People with money have stopped spending. They’re saving right now while they wait for signs of what policies are to come.

While they hold onto their money, less money circulates within society. As they stop purchasing and investing, less business and commerce occurs.

As less commerce occurs, revenue slows down, making it impossible for employers to maintain their employee base. That means salary freezes or layoffs.

Reagan spoke of trickle-down economics in the context of a rising tide lifting all boats. He said as the entrepreneurs and business leaders enjoyed success, they’d hire more people – enabling more people to purchase and spend.

We’re seeing the opposite now.

Everything in an economy is inter-related and how things go usually starts at the top. In Reagan’s ideal world, the achievers create jobs, which spreads wealth.

In our current world, the achievers are holding their wallets, which spreads stagnation.

Either way, it hinges on the freedom to create and pursue a dream. We’re not getting out of this until we free people up to do just that.

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