BA on Assignment

June 18, 2018

Trickle-Down Economics

More articles for »
Written for: Communicado Magazine
Tags: , , , , ,

I’ve wanted to write about trickle-down economics since the last general election, but, I was having trouble figuring out how to do so without incensing liberals and supporting conservatives.

Well, I’m a journalist, so, reporting the facts is the first requirement. But, I remembered something from my contracts class in law school… consideration. If I do A, you must do B. Without the assurance of B, there can be no A. Clear and simple. Republican lawmakers should understand this because many of them are lawyers…

So here’s what you need to know about trickle-down:

Trickle-down economics is defined as – A theory that advocates reducing taxes on businesses and the wealthy in society as a means to stimulate business investment in the short term and benefit society at large in the long term.

For those of you with a more intimate understanding of Economics, this is supply-side.

The criticism for trickle-down clearly comes from the benefits given to the wealthy. They get up-front benefits with no mandate to return some portion of the benefits back into the stream of commerce. While less critical, big business gets a similar deal, but, does have more stringent and defined tax implications.

The idea is that if they get some breaks, they will be able to pass on the savings. But without being forced, they often don’t pass on the savings. The explanation for which is usually, “The cost of doing business has increased and so must our products and services.”

This is where liberals and consumers have standing. The benefit of the doubt should confirm the value of trickle-down… It’s the return-on-investment that doesn’t get confirmed. If it did, trickle-down would absolutely work. But…

A perfect example of this dilemma is healthcare…

If the largest healthcare companies would agree to economizing rates and services, the government would give them more incentives. Subsidies. This is how Democrats rationalize the effort. But Republicans don’t want actual regulations or mandates on healthcare.

The GOP wants to have faith in the healthcare companies that if they are spared legal requirements, they will automatically decide – out of the goodness of their hearts – to reduce premiums and general costs…

Unfortunately, most companies are in business to make as much money as possible and likely will not part with much of it without being forced. This is not news. This is why we have a Department of Commerce and a Securities and Exchange Commission.

The truth is, as consumers, putting conditions on giving businesses breaks is the only way to keep them honest. Quid pro quo. Like the concept of consideration in contract law…

So the question that all lawmakers need to be asking when in the discussion of trickle-down theory is: What is the consideration? This should apply to the banks… this should apply to the car companies… this should apply to the healthcare companies.

This is a non-partisan question that should yield a non-partisan answer…

But this post is not going to end this dilemma. If it were this simple, it would be happening. But at least you know the facts…



Hardee’s Memphis BBQ Thickburger

I try fast food to give me more things to write about and because most people eat fast food. Regardless of how good or bad it is for you, most people eat fast food. So my most recent experiment was to try Hardee’s Memphis BBQ...
by Communicado Magazine


Let There Be Light

I recently had to buy light bulbs. If you’re thinking that’s not really a topic for discussion, you haven’t bought light bulbs recently… Do you know the difference between Incandescent, Compact Fluorescent, LED and Halo...
by Communicado Magazine


Pickup & Delivery Service: WHAT!

So the Lincoln Motor Company has decided to introduce a new service called Lincoln Pickup & Delivery. Instead of explaining it, here’s what they posted on their website about this new “ownership experience:” An effor...
by Communicado Magazine



The Travel Ban

So we’ve had a new President for approximately two weeks and we already have our first controversy – The U.S. travel ban. It’s an executive order put in place by President Trump restricting entry to the United States ...
by Communicado Magazine


What have we done to our Election Process…

You should probably sit down… This is gonna take a minute… Originally, I said I wanted to start writing about Election 2016 at the beginning of 2016 because our general election cycles have started running together – ...
by Communicado Magazine


Five Guys or Shake Shack?

I do love a good burger. But, as Americans, I think that’s a requirement. I recently wrote a post about a gourmet burger I had at an upscale restaurant in lower Manhattan. It was a $25 burger… Don’t get me wrong, it was g...
by Communicado Magazine



Be the first to comment!

You must be logged in to post a comment.