A trickle down economy goes more like this. John wants money. John goes to the bank to get a low interest loan. The bank is able to give John the loan because the Federal Reserve prints money out of thin air and lends it to banks at near 0%, and the government has compelled the bank to give loans to guys like John because the politicians believe this will help the economy. John gets an office, and computers, and desks. John hires employees. John begins selling widgets that he imports from China, but the widgets are poorly produced. John quickly finds himself losing more money than he is making. John says “Hey government! I need help! I’m a job creator!” Government says “Here John, we’ll give you money we took from Joe and his employees, because they are doing so well on their own.” In the eyes of “trickle down economics” this is good for the economy, because John has employees and the government wants to keep the unemployment rate low. In free market economics, John can’t get the government mandated printing press loan. He has to work for a guy like Joe, he has to be productive. He either has to save money from that productivity, or convince a private investor that he can make money for him, before he can buy offices, and desks, and computers, and employees. If he does acquire those things, and fails in business, then his assets get sold to the highest bidder to satisfy his debts, someone else takes the reigns of the business, and hopefully makes better decisions to succeed.
Posted on: Sun, 26 Oct 2014 13:30:00 +0000
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