Thursday, November 9, 2017

"Trickle Down" economics

Questions have come our way about "trickle down" economics. i.e., will it work if companies invest, expand their businesses, and hire more workers. In theory, were it to follow this format, it would. The problem is that there is no way to enforce "trickle down," previously tried and sold to the public by at least one previous administration. Here's why: employers and owners are free to skim off the profit and invest it either in the USA or abroad. There is no requirement to expand the local factory, increase production, or allow increased profits to "trickle down" anywhere other than to  corporate owners personal use. In the debate and reconciliation process we await in Congress we'll listen carefully to whatever details about "trickle down" either side cares to reveal. We suggest that our readers e-mail or write their Members of Congress to ask how they expect to enforce "trickle down" to make sure that the concept isn't siphoned off and translated into personal emolument to feed CFCs  (corporate fat cats) at the top. 

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