Monday, December 4, 2017

Why Trickle Down Economics Fails Everytime

"The first reference to trickle-down economics came from American comedian and commentator Will Rogers, who used it to derisively describe President Herbert Hoover’s stimulus efforts during the Great Depression. More recently, opponents of President Ronald Reagan used the term to attack his income tax cuts." wikipedia.org


"Trickle Down Economics" is a made up concept by elitists to fool the ordinary working folk. It has never worked even though it has been implemented a few times by our government. The devastating effects it has on the economy and our daily lives is authentic. It is not a hoax brought on by liberals or democrats. This is a system put in place that just does not now or never has or ever will work. Please do not be fooled again into believing that when the CEO's and the like have more money, they will share it with their employees. 9 times out of 10 their money is placed in offshore bank accounts not being taxed and out of circulation in the economy.


There is no proof that jobs, wages, or the economy will increase by giving the 1% a tax cut. When in reality they already have huge loopholes and tax cuts to where they are only paying 15% of their taxes, to begin with. How much more of a break do they need? If employees wages increased at the rate corporate executives increase their pay the American Dream wouldn't be such a nightmare.


Here is an example of some local corporate execs salaries courtesy of salary.com They "work" at Ameren, the bill you pay every month to have heat, gas, and electricity. Their jobs must be very important or extremely dangerous to receive that much money, right?



Name/TitleTotal CashEquityOtherTotal Compensation
Warner L. Baxter
Chairman, President and Chief Executive Officer, Ameren
$2,253,000$3,732,030$114,874$6,099,904
Gregory L. Nelson
Senior Vice President, General Counsel and Secretary, Ameren
$812,000$785,779$31,180$1,628,959
Martin J. Lyons Jr.
Executive Vice President and Chief Financial Officer, Ameren
$1,179,500$1,279,549$68,069$2,527,118
Michael L. Moehn
Chairman and President, Ameren Missouri
$879,000$944,912$54,152$1,878,064
Richard J. Mark
Chairman and President, Ameren Illinois
$899,000$854,048$48,943$1,801,991

 Could you imagine if we all got to enjoy a bonus or compensation like this every year? The economy could be booming. People would have money to pay their bills and spend money on vacations or eating out at a restaurant. Recently, in Seattle, Washington an experiment took place. They decided to increase the minimum wage there to $15.00 per hour in increments. So far the results are positive, and other states have followed suit. The federal minimum wage is a joke $7.25 per hour who could live on that?


An example of a company that cares nationwide is Costco. The company pays a living wage. Costco's CEO and president, Craig Jelinek, has publicly endorsed raising the federal minimum wage to $10.10 an hour, and he takes that to heart. The company's starting pay is $11.50 per hour, and the average employee wage is $21 per hour, not including overtime. That is according to this article by the Huffington Post. They also have health benefits, vision, dental, and childcare cost program. Not to mention the 401k. Why don't more companies realize that when you take care of your employees, they work harder and take care of your customers better?


My point is if the trickle down stuff worked it would already be happening, and it isn't. Why aren't more companies hiring and increasing wages? If you make 6 million dollars a year spreading the wealth should come quickly to you. Would you miss the money if your employees made more money per hour?


sources: Costco, Huffington Post, thenation.com, wikipedia.org


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