The IMF Confirms That ‘Trickle-Down’ Economics Is, Indeed, a Joke
“Trickle-down” economics began as a joke. Seriously.
If there’s one person most often associated with the origins of of trickle-down economics, it’s President Ronald Reagan. Few people know, however, that the phrase was actually coined by American humorist Will Rogers, who mocked President Herbert Hoover’s Depression-era recovery efforts, saying that “money was all appropriated for the top in the hopes it would trickle down to the needy.”
Rogers’ joke became economic dogma within two generations, thanks in large part to Reagan. At the center of Reagan’s economic doctrine was the idea that economic gains primarily benefiting the wealthy — investors, businesses, entrepreneurs, and the like — will “trickle-down” to poorer members of society, creating new opportunities for the economically disadvantaged to attain a better standard of living. Prosperity for the rich leads to prosperity for all, the logic goes, so let’s hurry up with those tax cuts already. The legacy of Reaganomics continues to shape modern debates over macroeconomic policy in the United States, from the Bush tax cuts of the mid-2000s to the deficit hawks waging war over the federal budget in Congress.
Now, nearly 80 years later, Rogers’ quip is getting the punchline it deserves: A devastating new report from the International Monetary Fund has declared the idea of “trickle-down” economics to be as much a joke as he’d imagined.
morexynthee, tk2kewl, Downwinder and 11 othersFanBoy, Populist Prole, broiles, Peacebird, daleanime, NV Wino, Lucas Jackson, ThouArtThat, mmonk, disillusioned73, zoolook67 like this"But nothing ever changes unless there's some pain" - Tears For Fears "Goodnight Song"
You must be logged in to reply to this topic.