We told them wealth would trickle down

Jun 2011
1,474
217
What do you think the stimulus is? Who do you think owns those companies working on the roads? Poor people? The machines they use (caterpillar, komatsu), more poor people, right?

Defense spending, those companies, even medicaid/medicare, those funds get paid to doctors, those doctors are really poor.

How do you reconcile your disbelief in 'trickle down' with your devotion to the Keynesian multiplier?

Hint: its the same thing....
 

metheron

Former Staff
Nov 2006
14,266
4,166
MI
What do you think the stimulus is? Who do you think owns those companies working on the roads? Poor people? The machines they use (caterpillar, komatsu), more poor people, right?

Defense spending, those companies, even medicaid/medicare, those funds get paid to doctors, those doctors are really poor.

How do you reconcile your disbelief in 'trickle down' with your devotion to the Keynesian multiplier?

Hint: its the same thing....
So trickling down to 2% is good with you?

Trickle down is hogwash. I guess throw the dog a bone and it'll keep him happy for a while works for some.
 

Jets

Moderator
Feb 2011
23,713
14,538
New York
The wealth cannot trickle down per se until people start spending money again. The cycle:

Investors have money to invest.

Consumers need money to buy.

Demand for the good or service creates an employment opportunity.

The investor finances the job creation.

New jobs increase employment.

Heres the problem: The cycle is stationary.

The consumers do not have money to spend. If they are spending its not creating economic activity.
 
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