A THEORY THAT HAS FAILED FOR OVER 100 YEARS
By James Turnage
Mitt Romney’s choice of running mate, finally gives us some insight into his economic ‘plan’ for our country. Most of us who are politically savvy, have known what it was, we just never heard Romney admit it.
Paul Ryan’s outrageous budget offerings are no more than an extreme version of the right wing God, Ronald Reagan.
I’ve heard FOX news pundits, and right wing radio personalities claim that Reagan was the greatest president of all time. I claim that he was the best actor at playing the part of a president. His economic policies began the downfall of our country’s greatness which was historically symbolic in the prosperity of our working class. He called it ‘trickle down economics’. It doesn’t work.
The term meaning a policy of giving tax breaks and other economic benefits to businesses and the wealthy will benefit the poorer members of society by increasing employment, and improving the economy as a whole. The term ‘trickle down economics’, is actually attributed to humorist Will Rogers. He said during the Great Depression that “money was all appropriated for the top in hopes that it will trickle down to the needy”.
Legendary economist John Kenneth Galbraith noted “that trickle-down economics” had been tried before in the 1890’s under the name “horse and sparrow theory”. Whether it is called “trickle-down”, “supply side economics”, or “horse and sparrow”, each refers to the idea that, “if you feed the horse enough oats, some will pass through to the road for the sparrows”.
In 1896 presidential candidate William Jennings Bryan made reference to the trickle-down theory in his famous “Cross of Gold” speech.
“There are two ideas of government. There are those who believe that if you just legislate to make the well-to-do prosperous, that their prosperity will leak through on those below. The Democratic idea has been that if you legislate to make the masses prosperous their prosperity will find its way up and through every class that rests upon it.”
Since Ronald Reagan, every republican president has used some sort of trickle-down economy as their basic premise. They all failed. The Tax Justice Network performed a study in 2012 indicating that the wealth of the super- rich does not trickle down to improve the economy. The money gained by giving the extremely wealthy tax breaks simply ends up in tax havens, and creates a negative tax base.
Romney and Ryan, our “horse and sparrow” for November.