My latest letter to the editor:
It ain’t rocket science. It’s the economy, and it’s not that difficult to understand. Whether you call it “Trickle-Down” vs. “Bubble-Up” economics or “Supply-Side” vs. “Demand-Side” economics, it boils down to one simple question. In a recession, do you get more money into the hands of consumers, or do you try to get more money into the hands of the wealthy?
When consumers are suffering and have no money to spend beyond the necessities of life, there is NO discretionary spending, and thus NO demand for products and services. Proponents of Trickle-Down argue that getting more money to “Job Makers” creates jobs that will put money into the hands of consumers. The fatal flaw in that argument is that it’s putting the cart before the horse. No matter how much cash they have on hand, business decision-makers in their right minds will NEVER add jobs and increase production if there is no demand for their products – period!
The purpose of any business is to make a profit by satisfying consumer demand. No demand, no profits, no new jobs. However, if consumer demand is high and businesses have no on-hand cash, banks love it because that’s when giving business loans is low-risk because of the potential profits. No bank ever loaned dirt-poor consumers money to increase their spending power.
Sorry Conservatives, but your stoic belief in Trickle-Down is misguided, and the GOP’s constant mantra about “Job-Makers” is a deception, especially in a recession – an intentional deception.