Sunday, February 8, 2009

The Stimulus Bill Proves That Trickle Down Economics Works

I know that in today's sound bite world it is fashionable to mock the simple truth that Trickle Down Economics works. It is easy to join with the non scholars and unobservant educators that discount the concept, because it is counter to what they want to believe. How could what George H. W. Bush called "voodoo economics" possibly be a valid economic principal?

The simple fact of human behaviour, and simple economics is that jobs are created when someone with money needs something done. Someone who needs money works for the person with money. Someone makes a product to sell, and people with money buy it. From the simplest example of a homeowner that hires a painter to paint their kitchen, to a more complex example of investors buying stock so that a corporation can hire workers to produce goods and services. These are examples of trickle down. The money goes from the person who has it to the person who will do something for it. If you invest millions of dollars in a corporation, they will hire workers to provide goods and services. Profits will be made and debts will be paid. If you just give millions of dollars to ordinary people, jobs will not just magically appear.

Isn't this exactly what the stimulus bill is all about? The vast majority of the spending is going to go to some form of business owner, be it public or private, to get something done. Jobs will be created and employees will be hired to get the work done. Money will be given to the owners, or controlling individuals in the companies and it will be paid out in salaries, utilities, raw materials etc. That is trickle down. Trickle down works.

If you allow the business owner to keep more of their taxes, which in turn allows them to do more of the same things they would do with stimulus money. That amounts to the same as giving the business stimulus money.

Think of it like this. The President Obama and all of the Senators and Representatives know that trickle down works, they just don't want to admit it. The vast majority of the 800 or is it 900 BILLION dollars that are in the current form of the stimulus bill, plus all of the billions in the auto industry bailout, and last summer's bank bailout billions; are all going to the top levels of business in one way or another. And if you add any money that will be given directly to American people that is trickle down too, (just trickling down from big government). Why are they giveing out the money at the top? Because they know that trickle down works.

Sure there is greed and selfishness at the top of the business class. There is just as much greed and selfishness in the House and Senate. Truth be told greed and selfishness permeate all sectors and stratas of our society. Human behaviour is as much responsible as it is the product of greed, and selfishness.

There are nay sayers who would contradict and say that all growth must come from the bottom up. Anyone who is really observant of human commerce and interaction knows that everyone is a producer of some sort, but not everyone creates jobs. Not everyone wants to take the risk of being a business owner. Not everyone would be comfortable with a commission only sales job. Some people just want to get a paycheck for doing what needs to be done. Some people will do what is asked of them, and others will do the asking.

Jobs do not flow from the people who want to work. Work, and by that I mean jobs, stream from the persons who want to get something done. They have the ideas, and find the capital to put their ideas into motion. The great force of capitalism has driven this nation to tremendous heights, and I believe that we are not done yet. The rain falls on the just and unjust, but it comes from above. It trickles down from above and all benefit.

I am the foremost expert on my opinion, now you know why they should have asked me first.

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