Trickle Down - How's That Working For You

[BigLouie]

[joe bloe]

Here's a crazy "right winger" making the case for supply side economics.

http://www.youtube.com/watch?v=aEdXrfIMdiU

[CJ7]

lets see ...

I'll go buy a piece of property, build a huge warehouse, hire 100 employees, invest in assembly line machinery, start producing product, fill up the warehouse with the product, advertise, advertise, advertise, have a massive monthly overhead ...

and hope like hell there is a demand for my product

supply before demand.

Brilliant!

[joe bloe]

Originally Posted by CJ7

lets see ...

I'll go buy a piece of property, build a huge warehouse, hire 100 employees, invest in assembly line machinery, start producing product, fill up the warehouse with the product, advertise, advertise, advertise, have a massive monthly overhead ...

and hope like hell there is a demand for my product

supply before demand.

Brilliant!

You are completely clueless. You obviously don't even know what supply side economics is.

[i'va biggen]

It is a catch 22 employers won't hire till customers start buying,who can't buy cause they are broke and unemployed...

[CJ7]

lets try this one too

I have a job as the COO of a Fortune 500 company, a posh corner office, an expense account, company car (Mercedes), medical and dental incurance, and every other benefit that goes with my $1.250 million dollar a year salary ... I stand to get back about $120K this year from the IRS because I get tax cuts.

after I get the $120K, I'll qiut my job, give up all my benefits and salary, start my own business and HIRE SOME PEOPLE.

[Ducbutter]

Originally Posted by joe bloe

You are completely clueless. You obviously don't even know what supply side economics is.

Whenever anyone uses the term "trickle down" economics it means they don't know what supply side econ is. Simple as that.

[CJ7]

lower taxes to lower production costs to lower prices to increase sales to benefit customers and deregulate

the best question is hows that been working out for the last 11 years

[Ducbutter]

Originally Posted by CJ7

lower taxes to lower production costs to lower prices to increase sales to benefit customers and deregulate

the best question is hows that been working out for the last 11 years

That's terrific CJ. You have a definition but the examples you gave previously were examples of micro, not macro economics. Supply side is a macro principle so while you have a definition you don't understand the concept.

[CJ7]

Originally Posted by Ducbutter

That's terrific CJ. You have a definition but the examples you gave previously were examples of micro, not macro economics. Supply side is a macro principle so while you have a definition you don't understand the concept.

thats Laffer-able

[Ducbutter]

Originally Posted by CJ7

thats Laffer-able

That's a good one.

[joe bloe]

Originally Posted by Ducbutter

Whenever anyone uses the term "trickle down" economics it means they don't know what supply side econ is. Simple as that.

The term "trickle down" was made popular by Will Rogers. Will Rogers was a big defender of FDR and the New Deal. Rogers used the term to ridicule conservatives who were against FDR's unconstitutional expansion of the government and Keynesian economic policies.

Cutting spending and lowering taxes in order stimulate economic growth has been around forever; it works everytime. It worked for Calvin Coolidge (Reagan's favorite president). It worked for John Kennedy, it worked for Ronald Reagan, and yes it worked for George W Bush, whose unemployment rate for two terms averaged 5.3%.

[CJ7]

Originally Posted by joe bloe

The term "trickle down" was made popular by Will Rogers. Will Rogers was a big defender of FDR and the New Deal. Rogers used the term to ridicule conservatives who were against FDR's unconstitutional expansion of the government and Keynesian economic policies.

Cutting spending and lowering taxes in order stimulate economic growth has been around forever; it works everytime. It worked for Calvin Coolidge (Reagan's favorite president). It worked for John Kennedy, it worked for Ronald Reagan, and yes it worked for George W Bush, whose unemployment rate for two terms averaged 5.3%.

every time?

after you get your head out of your ass look around pal

[LordBeaverbrook]

Actually Ducbutter, supply side and trickle down are related because tax breaks are a tenet of both, but they are not exactly the same. So it isn't "simple as that". It's more like crocodiles and alligators as supply side is more of a comprehensive maco policy. OTOH, I'm thrilled that you made the distinction between macro and micro. When someone sites a tenet of micro like, "we balance our house/company/city/state/county budget so the U.S. should" it clearly shows they have no understanding at all. Worst, is that if you ask why the answer is usually "just 'cause"citing a micro principle.

When Main St. Does well, Wall St. Does well, not the other way around.

When the Middle class does well, everybody, especially the rich, does well (ever hear of aggregate demand?) not the other way around.

As far as "build it and they will come" that is much the way high tech works with middle class people leveraging themselves to the hilt to start a company, follow their dream and hire people. Statistics show most of the jobs come from small businesses and when those are successful they become big businesses or get bought by a big business. Other business segments maybe not so much.

[joe bloe]

Originally Posted by CJ7

every time?

after you get your head out of your ass look around pal

We're in this mess because of run away entitlement spending, not supply side economics. We are not going bankrupt because the government is too small and doesn't spend enough.

We are going bankrupt because the government spends too much, not because the taxes aren't high enough.

We are in this mess because of socialist/Democrats like you.

Here's one of your genius spokesmen explaining how Obama's economic plan is going to work.

http://www.youtube.com/watch?v=-wPO1xVAO_Y