 Think about this in the context of trickle-down economics Isaac Newton was born December 25th. I can't remember the year but a long time ago and What he has done his discoveries Have changed the world They have trickled down or more accurately flooded down to all the rest of us who are not geniuses who are not anywhere near as creative and as productive and As smart as Isaac Newton was but Isaac Newton has made all of our lives better They could not have been an industrial revolution without Isaac Newton They could not have been a technological revolution today without Isaac Newton Very few of the bridges that you see out They could have been built without Isaac Newton We certainly wouldn't have gone to the moon without Isaac Newton We wouldn't have any any any any of the material goods that we have today without having an Isaac Newton Talk about trickle-down Isaac Newton made all of our lives hundreds of years later Much much better off than they would have been Because of his discoveries because of what he did That is the essence of trickle-down. I don't like the term trickle-down. I Like the idea that we all stand on the shoulders of giants We all stand on the shoulders of atlases to refer you back to Atlas shrugged There are people out there who are incredibly productive There are people out there who are incredibly smart There are people out there who are incredibly knowledgeable and They make life better for us by odors of magnitude They make life better for the poor for the middle class for everybody Much better and without them They would be no jobs for the poor No jobs for the middle class without entrepreneurs without inventors without engineers Without the so-called rich without those people in the top. I don't know 1% 10% What do you think jobs are gonna come from Who's gonna who's gonna invent the next great thing? Oh? Bill Gates and and all these rich entrepreneurs out there. They've got all this money And we don't see any of it What about there's no trickle-down? Of course there's trickle-down. You've got an iPhone. You've got an iPad You've got all the ticker. Oh, you've got an internet Internet is a huge trickle-down to you to you who didn't invent the internet I didn't invent the internet a Bunch of entrepreneurs did most of the work to commercialize it to make it possible for me to use it They made a lot of money at it and who benefits from that me. I get to use the internet What did I pay for it zero nothing nada? Of course economics is about trickle-down Again not trickle-down flood down What a fall down it is the great entrepreneurs the great producers Who make our economy run? Not the workers. Sorry. I mean workers are important. There's nothing against work. Work is good work as moral workers virtuous But you don't change the world The people who change the world the people who make your work possible the people who create the jobs the people who have thoughts about how to Take money and invent something completely new and invest in something completely outrageous that nobody would have thought possible And thereby creating jobs in some Field that we can't even imagine today. It's that bioengineer that has an idea about how to cure cancer. He is Going to change the world and impact everybody else Talk about call it trickle-down call it flood-down. He's gonna make the lives of everybody who didn't invent this cure for cancer Everybody's lives better and hopefully he becomes super rich as a consequence And then the left and some people on the right will say oh, he's got so much money That's not right. We're not benefiting from all the money. He has We need more trickle-down. You already got the trickle-down. You got the drugs. You got the cure for cancer That was the trickle-down and oh by the way Not only did he get the drugs the cure for cancer you also got You also got Employment he hired people to produce the drug We've got people selling the drug. We've got massive quantities of employment and on top of that He's taken all his money that he's made and he's investing it That's providing capital for other businessmen to create more jobs and more products and more benefits for your life and for my life I Mean every way you slice this every way you slice it It is the successful rich businessmen Who create the goods and the jobs? That we enjoy all of them at the end of the day You have to be realistic about this if you're a single employee at a single job Doing a single task you're creating very little But if you're Jeff Bezos You look I mean think of what he's created. He's created Amazon Changed all of our lives Changed the entire landscape Created hundreds of thousands of jobs Some of them at Amazon some of them at UPS and FedEx. Yeah, some jobs went away at retailers who are less efficient We are benefit because we get convenience and price And yet Jeff Bezos then he takes all that money and he invests it's one of his investment is in a space Exploration company. He wants to go to Mars the highest people people work for him one day We might go to Mars and who knows what that will open up in terms of Benefits to mankind other parts of his money. I'm sure invested in all kinds of other companies Basically their money is going to do what? To create jobs and to create goods and products that we consume It's not that businessmen exploit us It's not that businessmen do nothing We do all the hard work and they benefit from our hard work and they they take it away from us. No No, it's the opposite they do the really hard work and The really hard work is not physical labor turns out never has been The really hard work is the thinking necessary to invent Amazon the thinking necessary to discover the laws of physics the thinking necessary To improve the light bulb as Thomas Edison did or to create a whole electricity industry As Thomas Edison did never made it, you know That's the real work and that's the work that benefits Humanity that's the work that we all benefit from that's the work that trickles down But even in the more mundane view perspective the purely money materialistic sense It's not trickled down. It's a flood Think about Think about You know cutting taxes for the rich They have more money What are they gonna do with that money? What are they gonna do with that money? Now if you had money if I had money we're likely to go out and spend it indeed I just read a report. Where is it? Yeah, that yours consumer spending Rose in November, it's it's I think it's rising in December again. It's it's really really high and That our saving rate the amount of money we save is That a 10-year low now think about that How do what is the money to build new factories come from where does the money to build new warehouses the stores that are buying new trucks? Come from where does the money to invest in new technologies come from? It comes from our saving It comes from you can't the money to invest is money that somebody saved And we're not saving Saving rate is at a 10-year low and Indeed if you dig into the numbers you discover that most Americans don't save at all a Lot of us ain't debt We have negative saving We consume money. We don't even have Who does safe? Who does most of the saving in the American economy? most of the saving in the American economy was done is done by wealthy people Because after you reach a certain level, there's only so much you can consume. There's only so much you want to consume and then You invest You save and by doing so you create jobs you create New products you create a growing economy the responsibility for the growing economy in the United States is The fact the wealthy people are saving and investing now when you cut their taxes, what a rich people do now Poor people or low-minute class people they they go on and they buy more stuff now. That's okay I have nothing against that and I'm all for cutting everybody's taxes But the fact is from a purely economic perspective Saving is much more important than consumption Investment is far more important than consumption because it creates future jobs future consumption future Goods and products to be consumed What do rich people do with the money they don't pay in taxes they save it they invest it they create jobs So yeah, it's trickle down Yeah, it's flood down That's where we get our jobs So if you want the US economy to do well if you want to have more job opportunities more job prospects you want Wealthy individuals you want businesses to make more money not less To be able to keep more of their own money not less because they're the ones who create the jobs