Trickle down economics works on paper but because it assumes that A there’s only one country in the world in which anybody would spend any money, and it’s the country in which they generated that money, and B that people pay taxes proportionate to the amount of money they possess and therefore are incentivized to spend it when they get it, which of course doesn’t work because either they are not paying taxes proportionate to their earnings, or they are finding some other way to not pay the taxes other than spending the money.
It also assumes that rich people will invest all of their money into new businesses and create jobs and thus let the money flow into the economy. But most rich people just invest most of their wealth in real estate and in the stock market, that money will never flow into the real economy.
Trickle down economics works on paper but because it assumes that A there’s only one country in the world in which anybody would spend any money, and it’s the country in which they generated that money, and B that people pay taxes proportionate to the amount of money they possess and therefore are incentivized to spend it when they get it, which of course doesn’t work because either they are not paying taxes proportionate to their earnings, or they are finding some other way to not pay the taxes other than spending the money.
It also assumes that rich people will invest all of their money into new businesses and create jobs and thus let the money flow into the economy. But most rich people just invest most of their wealth in real estate and in the stock market, that money will never flow into the real economy.
it also assumes that the ultra-wealthy are human and should be allowed to live. which I think is a really problematic assumption.
but their behavior is fundamentally not human. it’s like a whole thing.
Did Reagan assume a wealth tax? Who did?
Theodore Roosevelt
Before Reagan we had a progressive tax actually