by Thomas Sowell.

http://www.jewishworldreview.com/col...ll122308b.php3

Thanks for the holiday cheer! I believe you're feeling the Reagan "Trickle Down Theory".

Originally Posted by chelsea24

Thanks for the holiday cheer! I believe you're feeling the Reagan "Trickle Down Theory".

Not Reagan but Milton Friedman.

"Trickle Down Theory" Of course money comes from the top down! Do tomato pickers in Florida create jobs? Does anyone ever spend their way out of poverty? Have you or anyone in your family created jobs? 40% of the US GDP already comes from the government. Do you propose that we tax everyone above some random income, so that the government can spend it to provide employment to the masses?

Work is created by people, that through their inventiveness, design a product or service that the masses want, thereby creating jobs for the masses. Without the millionaires and billionaires of the world spending their money there would be little work to be had.

Originally Posted by gnu

"Trickle Down Theory" Of course money comes from the top down! Do tomato pickers in Florida create jobs? Does anyone ever spend their way out of poverty? Have you or anyone in your family created jobs?

Work is created by people, that through their inventiveness design a product or service that the masses want, thereby creating jobs for the masses. Without the millionaires and billionaires of the world spending their money there would be little work to be had.

Sounds good on paper. However, it never seemed to "trickle down". Stayed in the pockets of the millionaires.

Originally Posted by chelsea24

Sounds good on paper. However, it never seemed to "trickle down". Stayed in the pockets of the millionaires.

Yes, much does stay there...with those who took the risk, but if you just read you will find everyone else does better also !!!

Originally Posted by Bucco

Yes, much does stay there...with those who took the risk, but if you just read you will find everyone else does better also !!!

Lets see...we had 12 years of trickle down under Reagan and Bush1. Big deficits and if I remember correctly the phrase was "Its the Economy Stupid".

Now 8 years of trickle down and my 401K and mutual funds are in the crapper. 1.5 million jobs lost more in December.

Yep.....trickle down creates jobs and spreads the wealth.

Don't make me laugh... Oh did I mention my company isn't giving raises to the employees this year. But of course the CEO and managers get their bonuses.

Originally Posted by cologal

Lets see...we had 12 years of trickle down under Reagan and Bush1. Big deficits and if I remember correctly the phrase was "Its the Economy Stupid".

Now 8 years of trickle down and my 401K and mutual funds are in the crapper. 1.5 million jobs lost more in December.

Yep.....trickle down creates jobs and spreads the wealth.

Don't make me laugh... Oh did I mention my company isn't giving raises to the employees this year. But of course the CEO and managers get their bonuses.

I promise not to make you laugh !!!!

There are those, or should I say just about everybody, would disagree with your statement...."Lets see...we had 12 years of trickle down under Reagan and Bush1. Big deficits and if I remember correctly the phrase was "Its the Economy Stupid"."

Most importantly you went for the politics of the issue as the discussion was on the writings of Milton Friedman, and was NOT in anyway political....just the writings of a world respected economist.

It is NOT ALWAYS ALL ABOUT the parties !!!!

I might add that TRUE trickle down did not exist in the period you mentioned Cologal, but only for a short time....and also mention that JFK was a large proponent of true trickle down (which by definition is a bit of a stretch as it only applies to cutting taxes)

Originally Posted by chelsea24

Sounds good on paper. However, it never seemed to "trickle down". Stayed in the pockets of the millionaires.

And when has there ever been "trickle up" or "flow sideways?"

There's a great show on BBC-America called "Dragon's Den." It probably best explains to folk how venture capital works, who invests in new business, and why - the real "trickle down."

Government is not the driver or fuel for the economic engine. Most of the time government acts like a potato stuck in the exhaust pipe.

If the government was collectively smart on economics, it wouldn't be in the red itself, with the only solution always being to raise taxes on the populace..

Originally Posted by SteveZ

And when has there ever been "trickle up" or "flow sideways?"

There's a great show on BBC-America called "Dragon's Den." It probably best explains to folk how venture capital works, who invests in new business, and why - the real "trickle down."

Government is not the driver or fuel for the economic engine. Most of the time government acts like a potato stuck in the exhaust pipe.

If the government was collectively smart on economics, it wouldn't be in the red itself, with the only solution always being to raise taxes on the populace..

AMEN to that Steve. If only folks truly understood capitalism, economics and (heaven forbid!!) accountability.

Carry on my man.

Originally Posted by TallerTrees

AMEN to that Steve. If only folks truly understood capitalism, economics and (heaven forbid!!) accountability.

Carry on my man.

Me too stevez

I do my fair share to help America. I get my SS check and I spend it. I love to spend. It is good for the economy. It makes me feel good. The people that I spend my money with like me. They share the money with the government so they can send me more checks. Damn, the system works!

If you go back through history you will see there is always a recession following a recovery period and the recession is approximately 1/2 of the recovery periord. We came off of the longest recovery period in history, some of it caused by unnatural financial actions by both Presidents and therefore a recession could be anticipated which we are now in. I don't agree with doing a lot to avoid it since I believe and I could be wrong that it just prolongs and causes more problems down the road. There were alot of economic theorists who had great explanations before the recession that caused a great number of people not to pull out of the market. From a logical position it made sense to get out of the market about a year ago and save ones self from losses. It did not take a rocket scientist to see the recession coming.
I don't want to get into a protracted discussion on recovery vs recession but this one persons opinion.

Originally Posted by REH7380

If you go back through history you will see there is always a recession following a recovery period and the recession is approximately 1/2 of the recovery periord. We came off of the longest recovery period in history, some of it caused by unnatural financial actions by both Presidents and therefore a recession could be anticipated which we are now in. I don't agree with doing a lot to avoid it since I believe and I could be wrong that it just prolongs and causes more problems down the road. There were alot of economic theorists who had great explanations before the recession that caused a great number of people not to pull out of the market. From a logical position it made sense to get out of the market about a year ago and save ones self from losses. It did not take a rocket scientist to see the recession coming.
I don't want to get into a protracted discussion on recovery vs recession but this one persons opinion.

Maybe I'm an optimist when it comes to our country's financial strength, maybe I'm all wet, but according to a lot of sources this recession might last only 14 months. Granted, if these are the last 14 months of your life, you might not see that as being positive. I feel we need to promote a positive attitude about our economy and not look at it as "the sky is falling".

Look at all the gloom and doom over rising oil prices! Where are those prices now?

I for one HATED the 70s, with President Carters' fireside chats saying times are tough, tighten your belts, etc. How morbid his attitude, didn't make me feel positive one bit. Then take Ronald Reagan. Like him or loath him, he projected a positive, we can do anything attitude!

So, less gloom and doom and more "no big deal, we'll be over this soon".

http://en.wikipedia.org/wiki/Recession

I agree with you..There is alot of doom and gloom when in fact this is a very natural correction which takes place after recovery periods. The sky did not fall in the past and I suspect it will not fall in the future. I do think the politicians should be careful in trying to play with it since it is a natural economic adjustment. Whether it takes 14 months or 4 years it will correct itself. When you see all the people buying after Christmas it should make everyone happy as that is inventory being used that must be replaced. That causes jobs. I believe the auto industry is a little different and may have to be managed back to health because of the incredible impact a total failure would have on the US. BUT having said that they must become competitive and I would not suppose to be smart enough to say all that must take place to make that happen.