Aug 5th, 2008 | survey

"Trickle Down Economics"




23 votes, 133 views , 7 comments
 
 

 
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Comments (7)
Drowlord
(Reply)
Texas, United States

posted Aug 5th, 2008 at 10:18 CDT

Defense and security are horrible industries for our country to be investing in.  If a company spends $1,000,000 on security one year, they will probably be secure for that year.  If a second company spends that same $1,000,000 on engineering, it will have manufacturing tools and a product to sell for many years to come.  In all likelihood, the engineering company will still be secure for that year, too, since security problems are rare (and typically mild).  A year later, the first company has nothing, and the second one has an industry.  Some things are just a poor investment.  FDR spent government money on infrastructure (roads, electricity, water) to jump-start the economy.  That's pretty brilliant.  GWB spends it in security and defense.  Not so brilliant.

Darkkatana
(Reply)
Utah, United States

posted Aug 5th, 2008 at 09:00 CDT

Good point.

Philgtaylor
(Reply)
Australia

posted Aug 5th, 2008 at 08:00 CDT

Because if you give, lets say $1000 to a rich person, they will probably not spend it all. Whereas if you gave the same amount of money to a poor person they will spend it. The top 10% of people only account for 50% of consumer spending because they have around 70% of the wealth.

Random
(Reply)
Texas, United States

posted Aug 5th, 2008 at 07:50 CDT

The top 10% of income earners account for 50% of consumer spending.  One of the reasons consumer spending was down last quarter was that the top 10% have begun to cut their spending.  How does decreasing disposable income of the people who support 50% of the economy (through increased taxation) make things better?

Politicass
(Reply)
California, United States

posted Aug 5th, 2008 at 06:59 CDT

I see. I'll change my vote then. Trusting corpos to do thing for the better good of a country, an economy, or people in general is the flawed logic on which the capitalist system is based. Corpos don't have a conscience, and care only about one thing: growth and profit increase. I'm still mourning the fact corpos are treated as legal entities in our legal system.

Philgtaylor
(Reply)
Australia

posted Aug 5th, 2008 at 06:50 CDT

Put simply, it is cutting taxes on wealthy and large corporations the theory being that they will invest the money in more plant and equipment.

Politicass
(Reply)
California, United States

posted Aug 5th, 2008 at 06:33 CDT

Care to explain?

 
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