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Old 09-07-2012, 06:14 AM   #34
chiefzilla1501 chiefzilla1501 is offline
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Quote:
Originally Posted by Aries Walker View Post
I hope you're being facetious.

I'm not an economist, but from what I can understand, it goes something like this:
- Give the working (that is, middle) class tax breaks.
- This allows them to have a few extra dollars in their pockets.
- Some of which they then spend.
- As some spend, consumer confidence rises, and more spend.
- That money spent goes into businesses, of course.
- The businesses have more money.
- The businesses expand and hire more people.
- Boom.

The opposite, top-down (or trickle-down) goes something like this.
- Give the upper (that is, the job-creating) class tax breaks.
- The businesses have more money.
- The businesses expand and hire more people.
- People who were unemployed are now hired.
- People who are hired now have money.
- Some of which they then spend.
- As some spend, consumer confidence rises, and more spend.
- That money spent goes into businesses, of course.
- Boom.

How am I doing?
You are relying on the naive notion that all middle class income goes into spending. Much of it goes into saving, and often time that saving occurs under the mattress. Or to pay down debt, which is not consumption. You also leave out that the problem isn't about stimulating the middle class. It's about assuming they'll use handouts to better themselves. But that money often gets wasted on bureaucrats. It gets abused dramatically by he middle class taking more than their fair share.

I'm all for distributing wealth. But liberals make a false sh assumption that this money actually ends up in the right hands. Incidentally, conservatives make the false assumption that a rich guy will invest back into the economy. And it enrages me that no candidate is willing to meet in the middle and realize that both ideologies are flawed.

Last edited by chiefzilla1501; 09-07-2012 at 06:34 AM..
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