Trickle Down - Where's The Trickle Down?
(and today)
The Stimulus - Where's The Stimulus?
(A song dedicated to Greenspan)
Our nation and government officials are confronted with an economic problem that some say (only) increasing taxes will solve, while others of opposite view say (only) reduction of tax and interests will resolve. The one uses Reagan as example; the other uses Clinton as an example, both pointing to economic upturn using both yet opposite theorems. What neither seems nor wants to admit is that we are experiencing natural and contrived problems in our economy, and they are unsolvable through any normal process dependent upon distorted and untrue causes.
Consider that "Trickle Down" theorem is based upon a sound principle, this being that tax incentives would be best used to build upon existing business, technology, jobs, and thus keep America competitive in a world market. However what actually happened in this 1950-90 era was that these ‘incentives' were used in financial fiascoes called "Hostile, Leveraged, and Junk Bond buyout of existing business", when American industry plus jobs were being shipped to 3rd world nations where existed cheap labor and raw resources, and indeed higher profits. For those who wish to argue this point, let me point out that we no longer enjoy Industry and production that once furnished most of our needs, even supplying much of the worlds needs.
Today in fact we see that America is Importing up to 80% of all consumables, and producing now what is called "growing records in Debt". Indeed our government is enriching (tax-cuts and incentives) the wealthy, hoping apparently they will import beyond 80% of our consumables, while American consumers (majority) lose jobs and see dwindling savings for purchase of these additional imports. Not only does our importing increase, but our export is such that new records of "Trade Deficit" are reported yearly. At the same time that imports increase while American corporations build factories in 3rd world locations such as Communist China, these same corporations then lay off their US workers.
America developed the industry which enabled jobs commensurate with the many levels of ability found everywhere within the human race. These many job levels enabled entry or starter job, developing all the way to artisan level, as in fact industry itself developed. As the nation and labor committed and contributed its many skills and abilities, so the industry grew and developed. Because of this all workers had an opportunity to grow with the industries they made possible, all laborers could afford a decent living. Today as American industry and technology is shipped overseas, American labor has entered an era where the majority work in Service-Sector jobs, where wage level is either in low paying or high paying positions. At the same time the US Empire (now dominant in the world) has diversified into Multi National Conglomerates owing allegiance to no nation or peoples besides themselves.
So what can be the problem with this Trickle Down theorem, and why was US Heavy Industry shipped out of America? Was it because US labor was greedy, and cost themselves out of jobs? Where did a flourishing US economy go bad… please allow me to suggest a very plausible explanation.
Let me begin by describing an earlier period in our history. Return to a time before the Industrial Revolution, when labor in fact experienced a much different position within the socioeconomic level of existence. Perhaps you have heard of the period when labor could and did work any number of hours, having little or no job protection, safety, benefit, or living wage. It was a period of the Industrialist who could control all aspects of your life and future, by whim or by plan. It was a time that these leaders of Industry amassed great fortunes, lived in great mansions, and were comfortable earning minor interest on monies virtually stuffed into mattresses and bank vaults. This is much like the story you would hear about in any 3rd World nation, the elite few, and the general servile population.
Now let me describe to you what happened to take America out of this period of ‘normal' stagnant economies of the world, and began an economy that was the envy of the world. This was the period after which American Labor decided was time for an equitable sharing of the profits gotten by their sacrifice, talents, and contribution, which made possible these profits to begin with. The labor force rebelled against short sighted and greedy leaders, and through organized labor demands negotiated and received better wage, benefit, and working conditions that were in fact their due. And what happened to this previously stagnant wealth, which before through shear amount offered a gluttonous few a pittances in return.
What happened to this previously stagnant wealth was that an increased portion went into the hands of a nation and its labor, providing better housing, food, healthcare, education, expanding ingenuity and creativity. Of these many and expanding activities and development, there began an economy the greedy few had not even thought possible. Like a forest fire, those who had incentive produced more, and by shear advantage of production, enjoyed a life before only available to a few. In this period of the Industrial Revolution, we could have experienced an economy like that of any other heavy-handed regime, stagnant and benefitting only the rich. Instead because of a working Democracy, those who contributed were rewarded; those who set goals and succeeded enriched the entire nation as a result.
So why are we today investing ever more tax (refund/incentives) money into the pockets of those already wealthy, yet seeing no positive result. It is my opinion that we already know, we hear of a gap developing between rich and poor, and that this gap is widening. We hear that the Working Poor, who can contribute 50% and more of their earnings into taxes, who are accused of paying no taxes. We know about the disappearing Industries, that after the 1950s began being shipped to 3rd-world nations using tax incentives, and we see the remaining being merged into Multi-Nat'l-Conglomerates. We see wholesale and obscene corruption and theft, and our own government with hands outstretched to those destroying America in this manner. We see a revolving door between our "Public Servant" government representatives, and the " Corp-Board Greed" called CEO's. We see our nation drawn into illegal and immoral wars, necessary to safeguard the "Strategic" holdings and locations in weak 3rd world nations. In short, we are returning to the old ways of Despotic Empires, and we ourselves as the serfs used as needed.
It has been an obvious fact throughout American history, that developing 'Small Business' has alway been the backbone of both jobs and taxes. It was these small operations when successful by providing consumers with affordable and needed product, became the success which enabled the entire nation to become the envy of the world. What happened to these Small Business's is painfully obvious today, old money amassed over the centuries and through special tax laws and loop-holes, today has all but eliminated these through buy out and merge into their multi-national monopolies. If the above is true, then it is also evident that American Citizens must come out of their silent-majority comfort, and actively demand business and government with moral, ethical, and working principles. If Americans today cannot learn from our past history, I can guarantee we will live to regret it.
RtPriceTag@comcast.net
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