A Teaser for you . . . Trickle Down Economics

Ever since Reagan and Thatcher first tried them, trickle-down policies have exploded budget deficits and widened inequality. At best, they’ve temporarily increased consumer demand (the opposite of what’s needed during high inflation that Britain and much of the world are experiencing).

Reagan’s tax cuts and deregulation at the start of the 1980s were not responsible for America’s rapid growth through the late 1980s. His exorbitant spending (mostly on national defense) fueled a temporary boom that ended in a fierce recession. The Donald Trump White House’s tax cut never trickled down.

Yet the US never restored the highest marginal tax rates before Reagan, and deregulation – especially of financial markets – is a continuing legacy.

The result? From 1989 to 2019, typical working families in the United States saw negligible increases in their real (inflation-adjusted) incomes and wealth.

Over the same period, the wealthiest 1% of Americans became $29tn richer. The national debt exploded. And Wall Street’s takeover of the economy continued.

Meanwhile, and largely as a result, America has become more bitterly divided along the fissures of class and education. Trump didn’t cause this. He exploited it.

Why is trickle-down economics still with us? | Robert Reich | The Guardian

trump’s 2017 tax break left a $2,7 trillion bill on the table for us to pick up. One give back . . . If you eliminated the 2017 tax break for the fifth quintile, you could fund the other 80% taxes.

More for Them, Less for Us, Talking Taxes and Deficits – Angry Bear

Looking at the Trump 2017 Tax Breaks and Extension of them – Angry Bear