Does anyone here actually beleive in tricks down economics?


Most Helpful Girl

  • *trickle


Most Helpful Guy

  • The economic expansion experienced in the 80's compared to today's relative stagnation and cronyism is some pretty powerful evidence it was effective the last time it was actually put in practice.

    • You're committing a logical fallacy called "false cause" (presuming that a real or perceived relationship between things means that one is the cause of the other). Yes, economic growth in America was very strong after Reagan cut taxes for the rich in 1982. The GDP grew by up to 7.3%. However, as the Reagan and Bush Senior administrations kept cutting taxes for the rich even more, economic grow was not only stagnant but it went into the red numbers, eventually turning into a recession in 1991.
      At the same time, two of the three most successful years of the 20th century (where the American economy grew the most) were both in the 1950s, where the top tax rate was at a staggering 91%. The correlation coefficient between top tax rate and GDP growth in the US is 0.03, meaning that there is virtually no correlation whatsoever (if there was a correlation, the coefficient would be somewhere close to -1). Trickle down economics was created solely so that corrupt politicians can make financial

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    • an increase in hourly wage.
      - Job growth: The correlation coefficient between the variables here is -0.11, meaning that there have been slightly more jobs created in years with lower top tax rates, but this pattern is negligible - nowhere near strong enough to signify a relationship.

      Finally, let's look to other countries. If your trickle down hypothesis was correct, many countries in western Europe, particularly in northern Europe would be faring very badly. Norway and Sweden would have huge unemployment rates and crappy GDPs. Instead, the very opposite is true.
      As for Obama's politics: I can't see any kind of leftist swing in his policies. Obama has been sucking the dicks of big banks and large corporations just as much as Bush did. Despite being called a communist from the right, there has been nothing particularly leftist he's ever done (except maybe getting rid of "don't ask, don't tell" in the army).

    • Oh yeah? So you think you understand it better because? You happen to be an economics professor at Harvard? You're just very full of yourself and you can't bare to be wrong, so you keep closing your eyes and screaming "not true, not true!" like a little child, without offering any actual counter arguments. I can't have a discussion with a person who thinks he's such a fucking genius and everyone who disagrees must be wrong. Keep living in your delusion, sucking the dicks of billionaires, if that makes you happy.

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What Girls Said 0

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What Guys Said 2

  • No. It's ridiculous. We have a trickle up economy.

  • Lol there are some believe it or not. They haven't yet graduated from college idt

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