The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Friday, May 22, 2015

Income Inequality By GOP Policy



Income Inequality: Not "trickling" and never will. How is that GOP economic paradigm working for you?


60188-187.jpg
Off the backs and toils of the Middle class and lower income Americans

Ronald Reagan's Trickle-down/Supply Side Economics has left an indelible impact on the United States (and possibly on an international basis also). First, Trickle-down has never worked , and second American's political party has no alternative economic considerations. Thus, election GOP wins at the highest level of US governance with means your vote shepherds in the latest iteration of trickle-down economics. You know American conservatism as well as anyone. Conservatism is an ideology and mindset that is so resistant to change many conservatives resist the prospect of 'climate change' and they resist the reality of an increasingly diverse nation.

The following image includes the word "Aid." It is critical to view "Aid" as favorable tax structures for the wealthy and corporations. The salient point regarding "Aid" is benefit given to the nation's top income earners (people and corporations) ultimately trickles to a "drip-drip" vs the flawed theoretical flow prophesied by Reagan economic advisers. 




While the descriptive moniker for the fallacy laden economic theory (Trickle-down) speaks volumes and is easily understood, Ib-economic.wikispaces.com offers a good quick read blog page on "Trickle-down." Video link

The article also offers a good a written explanation as any I have read, when seeking a quick read definition.
In a nu­tshell, trickle-down theory is based on the premise that within an economy, giving tax breaks to the top earners makes them more likely to earn more. Top earners invest that extra money in productive economic activities or spend more of their time at the high-paying trade they do best (whether that be creating inventions or performing heart surgeries). Either way, these activities will be productive, reinvigorate economic growth and, in the end, generate more tax revenue from these earners and the people they've helped. According to the theory, this boost in growth will ultimately help those in lower income brackets as well. Although trickle-down economics is often associated with the policies of Ronald Reagan in the 1980s, the theory dates back to the 1920s. The name also has roots in the '20s, when humorist Will Rogers coined the term, saying, "The money was all appropriated for the top in the hopes it would trickle down to the needy" [source: Shafritz].
The theory is a basic as it comes and typical of surface conservative thinking and GOP Policy. In its most idyllic form, the theory makes sense and is easily assimilated in the minds of those who would via the theory gain most: middle income and low income earners. Well, as is the case with most economic theory, the minds, books and thought processes of people who think only in terms of theory do not adequately consider the human factor.  

"People who have it; rarely share it."

Actually, the comment just above has expedient value, but the words should not be taken literally, I doubt their are thousands across the US who truly want the nation's wealthy to dole-out money under the moniker of "sharing."  But, lets stick with the wording for a quick view of a perspective on how the wealthy consume and spend (or horde). See far right portion of the top chart.  While Americans with incomes at the high end of the spectrum certainly pay more and higher taxes, they exhibit the very same spending traits that relegates trickle-down to theory that only benefits the nation's more wealthy: "hording", seeking more and economic selfishness akin to modern day Silas Marners. The wealthy could contribute significantly more to the US economic reality. There is no better example than the US payroll tax which camps payroll deductions at just over $118,000 per year: the "CSP." Meaning once the income earner's income exceeds the "cap' they pay no additional tax throughout the years. (consider ignorant the bottom section of the graphic as it relates sole to consumer spending no no value reading my choice to use the graphic). 




If we look more closely at the net bottom line reality of GOP economic theory, the representative images are ugly.

Let's set the stage for what follows. The following meme illustrates the very basic difference in liberal or progressive economic ideology Vs, that of conservative American and its GOP.



Politifact

True
Obama
The United States is "seeing greater income inequality now than any time since the 1920s."

— Barack Obama on Wednesday, April 16th, 2008 in Democratic debate in Philadelphia

________________________

Regardless of President Obama's remarks and a reality the vast majority of liberal and progressives abhor trickle-down/supply side economics (Reaganomics), the reality is your vote for the GOP is a vote for economic theory that looks like this:



A well traveled graphic that stands above all the rest in depicting how your votes over the decades may have contribute to what rational middle income and lower income Americans should consider, unacceptable income inequality.


When Obama mentioned that income inequality had quadrupled since 1979, many conservatives went ballistic in disbelief. Some actually rushed to fact-checking entities and ran right-up against the Politifact research and ruling (above).

The economic reality has other fissures. Some wealthy Americans actually benefit significantly from Recession.  



Recession is a natural by-product of a capitalist economic system. Middle and lower income Americans rideout recessions with various degrees of hardship or financial setback. A stark and diametrically opposite reality from "rich" Americans.

Now add another layer of insult to the mix. Didn't the GOP majority House of Representatives recently vote to repeal the Estate Tax?  

House Votes 240-179 To Repeal Estate Tax


Does the Estate Tax in any way benefit you or me?   If there is benefit for either of us, I will wager (in your case) the benefit is not high-end benefit.


From Trickle-down, through the sub-prime bubble, and the horrors a the Great Recession, GOP economic policy will never move away from "funding the Top with false prophecy to the lower income strata."

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