Trickle down economics?
@christinep312 (131)
United States
February 4, 2009 10:26pm CST
A couple of days ago my mother raised an interesting question and I still can't answer it. All you people that think trickle down economics doesn't work why do you support Obama in his decision to help bail out more companies. If this didn't work than the ceo's would keep it all and the buisness would tank. Why isn't he proposing just bailing out individuals? After all, its the little people that drive the economy, not the corporations that give people jobs?
1 person likes this
3 responses
@murderistic (2278)
• United States
5 Feb 09
Trickle down economics does work in some cases, but not to many extremes. And I don't support the bail-outs, they are only prolonging the inevitable. That money should be given to people, whether directly or through social services.
1 person likes this
@Arkie69 (2156)
• United States
5 Feb 09
Trickle down economics will only work if companies have orders for goods and they can't can't afford to produce the items to fill the orders. Say if GM or Ford had a bunch of cars and trucks sold but don't have or can't borrow the money to produce them then the government can give them the money they need and the trickle down effect of that money will pay the workers at the bottom. This isn't the problem we are having with the economy at this time. There simply are no sales that require production. You're right though in some cases trickle down will work.
Art
@anniepa (27955)
• United States
5 Feb 09
I'll try to put it as simply and briefly as possible...if trickle down economics worked there wouldn't have been any need for these bail-outs. I would be all for giving the money directly to the middle and lower income people in one way or another along with funding the rebuilding of our infrastructure.
Annie
@christinep312 (131)
• United States
5 Feb 09
How about you not be brief and explain how it was trickle down economics that caused this... and I mean more than greed.
@Arkie69 (2156)
• United States
5 Feb 09
Very few people will agree with you that the little people drive the economy but I do agree. Obama like most everyone else is going at this bail out right backwards to what they should be. The problem with our economy right now is the fact that you and I can no longer afford to buy the things we were in the past. Far too much of our economy was being supported by the production, importation and sales of junk items you and I really can live without. The cost of the necessary things we must buy went up much too fast. This forced us to cut way back on the amount of the junk we were buying. This started aino effect that just keeps growing bigger every time it makes a complete circle. The lack of sales means jobs lost and jobs lost means less sales. Unployment is now feeding on it's self. They said yesterday we are now looking at about 1/2 milliom jobs lost per month and this figure is growing.
There is only one possible way to stop this slide. That is to create jobs so you and I will have a paycheck ti inject in at the bottom of the economy and let the money do it's things as it trickles up, not down. Obama made the statement that he wanted to put a lot of money into large companies so they could afford to hire workers. This is stupid. Getting workers to produce is't the problem. It is making the sales of the goods for the works to produce. That's where the problem is right now with our economy. At this point our economy cannot even start to repair it's self untill it has gone all the way down and wiped out a bunch of our mistakes. Once that has happened then we can start to rebuild the economy from the bottom up. People think it's bad now but we still have a long way to go to reach the bottom.
This very well could produce another world war. It can also bring down our government and a lot of the interstructor of the nation. Personally I don't support Obama. I will however give the man a fair chance to prove himself. Which I don't believe he will ever be able to do what this nation needs right now. In the last depression the government put a lot of money into the economy to bring us out of the depression of the 1930's. They did it two ways. First the Government paid a huge work force to build the war toys to fight WWII. Plus the Government also started government supported work programs that helped the workers in small town USA. Two of them I remeber was the WPA and the CC Camps. I think there were others that were used in the larger cities but not living in one I don't know what they were. They proved right here that exactly what you and I say is correct. Our government made it possible for the little people to earn a weekly paycheck and then injecy that money into the bottom of the economy and then let it trickle up to the producers. Contracts for sales must be there before any additional workers can be hired to produce the item. All Obama amd his crew are going to do is spend a bunch of money and accomplish very little. We are just about to the point where it will take an act of God to save this nation, and probably a lot of her people. Remember this. Hungry, scared people are the most dangerous animal God created.
Art