Once Upon a Trickle Down: The Rise and Fall of Supply Side Economics

Move over "Trickle Down," there's a new game in town. It's an economy that begins with the middle class.

Produced by the Center for American Progress (http://www.americanprogress.org/) and Mark Fiore (http://www.markfiore.com).

After thirty years of an economy geared toward the wealthy, the rest of us are waking up to the fact that a strong middle class is critical for robust economic growth.

• Category

  Nonprofits & Activism

[BlueDrakilicious]

Upper class blah, blah, middle class, blah, blah...

A WORKING CLASS HERO IS SOMETHING TO BE.... -John Lennon

[Carl Olson]

How much longer will we be fooled?

[mmzen]

We have a financial market that has net value that is about 20 times larger than the GDP of the entire planet, this is money that is trapped inside it's own closed system of immovable assets, this is money that is only helping the rich and doesn't trickle down to anybody, It' staggering when you think about it.

[MrDuplex97]

"if the american people allow private banks to control the issue of their currency first by inflation then by deflation the banks and corporations will deprive the people of their property until their children grow up homeless on the same continent their fathers concord.

[luvcheney1]

Sure. I will look again, to make my recollection, exact. IRS, "SOI Tax Stats - Individuals", (statistics of incomes) 2000, adjusted gross income, top 1%= $1.34 Trill. 2002 = .986 Trill(2002= just 73.5% of 2000! ) Bottom 50% was 4.3% MORE in 2002!. 2007 top 1% $2.01Trill, 2009 $1.34 Trill. (2009 just 66.7% of 2007)., while bottom 50% 97.8% in 2009, what it was 2007. So, we see clearly, when "income inequality" narrows, did lower class get richer? Was crash beneficial, to poor? Middle class?

[sabin97]

again, do you have any official statistics to support those claims?

[sabin97]

do you have the precise statistics for that in order to corroborate your 30% and 4% claims?

[sabin97]

as previously stated(you can do the math yourself to corroborate) 40% over 40 years is about 0.85% per year, which is a rather poor increase, specially when compared with the 275% the rich got.

[luvcheney1]

Post 3). In 1970`s, top personal tax rates higher than top corp rates. This incentivized CEO compensation to have it shifted to corp taxation. But, when personal rates fell lower, income shifted off corp balance sheets, onto personal tax forms. Income appears up, but only shifted, overstating inc. Health ins costs rising a lot, value of benefits rising. Total compensation rising, but not showing on 1040, as it is benefit. This understates inc. IRA 1986 understate mid class inc.

[luvcheney1]

Post 2) If you study the IRS site, SOI tax stats, you will note that from 2007-2009, incomes of the rich fell over 30%, and the lower 50% just 4%. So, in down economy, the lower classes, decline far slower than the rich. In up economies, the lower increase far slower. The question here is how to increase the wealth of the lower. You know, in poorer times, the lower classes saved far more, for starters. China is poorer, saves way more. Capital creation I suggest is key.