Re: Do you believe in "Trickle Down Economics"?
Originally Posted by Anorien16
This model fails to account for the increase in money and economic activity. Under this economic model - money can only come from something else... so, by this logic - all of the money and economic activity in the world today existed back in the 1700s?
all i know is: u cant Make money unless u juice it out of someone or something
If not... then where did the money we currently have come from? How did all of these companies come into existence and grow?
China is a complex scenario. On one hand - labor in China is far cheaper than Americans are willing to work for. If you make $300 a week, there, you're rich as hell... but it's considered rather introductory income in the U.S. ... BUT - China can (provided they can be kept from putting lead in ****) make quality spoons, plates, etc - things that most people would have to spend much more money on were it manufactured in the states. That's good news for people with the lower income jobs in the U.S. - it means that the money they earn goes farther and the savings can be distributed to other expenses and quality of living enhancements.
. . . . Most American Companies thrive cos of the cheap labor they obtain other countries like China
Meanwhile... these people in China start to make more money, their economy starts growing - and before too much longer, they find themselves in demand of products we are producing here in the U.S. - areas of production where we excel. They begin to purchase products from our economy which strengthens both economies.
Except... China doesn't do that. They deliberately undermine international patents and actively restrict the imports they allow into their nation. So it's something of a one-way street that doesn't work according to the model of the free market (though that is slowly changing... just whether or not it happens in time to save China's economy is another story).
In the free market model; Wealth and productivity are equivocal, and the two can be created. For example - the Cotton Gin greatly enhanced the output from one worker. Now a farmer could produce several times the amount of cotton and enjoy a larger profit-margin on more competitively priced cotton (sold cheaper). The creator of the cotton gin has created a product that improves productivity - just like the developers of steam engines and other such systems that led to the industrial era.
Time is the real 'money' - the ultimate currency. Anything produced to save another person time or to allow them to do more with the time they are doing a mundane task (such as riding on a bus) creates wealth. Any time someone creates a new product that is desirable (or a new service) - that creates wealth.
Money is merely a universal bartering currency that attempts to represent the amount your product or service aided another person.
The problem is that America is not a free market economy - it is a fascist economy where government and many large businesses have fused into the same effective institution. Some would call this "crony capitalism" - but it's more like "fascism lite." Lobbyists of large corporations lobby for laws that benefit their business - and laws get made that benefit those businesses and, also, award contracts to that business.
Which is why people currently sit there and say: "Look at America... the free market doesn't work!" .... well... true... but America isn't a free market.
I'm not sure you quite understood the question... or you put in a couple typos here that make this confusing.
. . . . also as far as I seem to understand Trickle Down Economics will not work ONLY when the Government is smart and judicious with the extra tax they get right? Well that a high expectation.......