The Trickle Theory

[bb]

Ok, place your opinions/facts here on the pros and cons of the Trickle down theory.
I am not even sure if there is a trickle up theory, unless your talking about Chris Matthew's leg.

My opinion ,unsubstantiated of course, is that companies employ people and to encourage/retain business solvency it is necessary to not tax the companies into oblivion, or other countries or states. I.E. Michigan




Man i do love this spellchecker:D

[Andy Schoen]

An interesting article on the subject of "trickle down economics" by Thomas Sowell: http://townhall.com/columnists/ThomasSowell/2005/03/31/stupidity_trickling_down

[jmac00]

http://en.wikipedia.org/wiki/Trickle-down_economics

this has some good insite:cool:

[RoBoTeq]

Trickle down in economics works in some instances, but not in others. There was no trickle down effect just prior to the great depression in the U.S., that was one of the problems. With all of the money staying with the very wealthy, there became more and more of a gap between haves and have nots. Once the have nots could no longer afford to purchase products, it wound up causing the haves to no longer have a place to sell the products they made their fortunes on.

[jmac00]

Trickle down in economics works in some instances, but not in others. There was no trickle down effect just prior to the great depression in the U.S., that was one of the problems. With all of the money staying with the very wealthy, there became more and more of a gap between haves and have nots. Once the have nots could no longer afford to purchase products, it wound up causing the haves to no longer have a place to sell the products they made their fortunes on.

I would agree with some of what you say, however some the reasons there were some many "have-nots" is basically because of pay scale. NO ONE ever got a raise, most people worked 2 or 3 jobs to make ends meet and there was no means of investing for the common person

and the difference between the crash of '29 and the crash of '08 is in '29 banks invested in stocks, not housing and there was no government bail out, back then the government never even considered a "bail out", the government simply stayed the hell out of the way and let the markets do there thing.