Just look at how much benefit the economy is getting from a relatively modest boost to the lowest incomes, which gets spent immediately or goes to reducing crippling debt, versus tax breaks and subsidies for the wealthy, which get plowed into asset bubbles and expensive wine.
No, no. Those wealthy receiving the tax breaks expand their companies which requires hiring more people. /s
The recent tax forgiveness that allowed all of those corps to bring their offshore money home proved your statement correct and the obvious falsity of the trickle down theory. The corps used the incoming money for bonuses, stock buy backs, etc. The effect it had on the lower income tiers of society was barely even noticed.
It doesn't invalidate trick down theory - it highlights a weakness in the human behavior in the personality types making those decisions. Ladder climbers vs conscious capitalists would have different results in 'trickle down'.
It’s not trickle-down in the sense that people traditionally talk about trickle-down, since it’s explicitly conditional on hiring. And it’s keeping people employed at a cost of ~$224k per job, which presumably makes it far more expensive than providing aid to those people directly. http://economics.mit.edu/files/20094
would still be running corporations beholden to company & shareholders before all else. Ignoring that (to be nicer than needed to employees or to over-hire) triggers automatic lawsuits from your institutional investors. There's a bit of wiggle-room for decision making, but why do good for the little people unless it's in your charter?
It does help the person in debt though. Have you ever had that kind of debt? Where they call you ten times a day? You can’t get an apartment if they’re going to run your credit score. It hurts your relationships and makes you depressed. Owing a few hundred dollars to a collection agency can really affect your life in a negative way.
It was because of an overdraft fee, if you’re wondering- I checked my account balance at an atm machine, and it came up $1.50. But, unbeknownst to me the machine then charged me 2 dollars for checking. That was the last day of the month, so then I got hit with an extra overdraft fee, so now I was down about 100 dollars. I refused to pay it. They continued charging me overdraft fees every month for a few years then sent the bill to a collections agency, it was over a thousand dollars by then. This was all going on in 2008 while I was watching every J.P. Morgan banker get away scot free for almost tanking the world economy. I ended up paying the whole thousand dollars so I could get an apartment with my girlfriend.
About 10 years later I got sent 25 bucks as part of a class action lawsuit against the bank. Thanks, I guess?
