Forum Post: Financial Suicide - AKA Trickle-down economics in a global economy
Posted 13 years ago on Oct. 17, 2011, 1:46 a.m. EST by NoneyaBiznazz
(84)
from Findlay, OH
This content is user submitted and not an official statement
The problem with the "trickle-down" economics model is that it assumes a closed system.
Even now that model IS valid, but the problem is that it is on a global scale. The money trickles down the the lowest point, and on a global scale, the lowest point is a 3rd world nation. ie. not here.
Job creators DO create jobs. Just not here. They create them where they're most profitable. And it is cheaper to educate someone in a 3rd world country just enough to work on an assembly line than it is to pay an American scale living wage.
Globalization isn't going anywhere, at least until the oil dries up. And if people care about this country we're either going to have to close the borders to imports, and raise taxes on companies with the majority of their employees outside of the US or we're going to have to abandon the trickle-down model altogether.
Go ahead trolls, tell me how your faith-based economic view handles this.
Democrat sponsored Free Trade agreements opened us up to global job competition. Republican obstinance and refusal to accept cold hard facts keep us from changing policies to adapt to the new global market.
We can't survive in an open market with a closed-market strategy. Its financial suicide.
How are these corporations making record profits in a recession? They are absorbing all of the rent from the land in America! If you look at all civilizations throughout history, including today, the wealthiest people of the time always owned the greatest amount of land. We should extract these rents through a Land Tax for everyone's benefit.
The theory of economic rent has been around for some time, but land taxation has seldom been implemented throughout history. It is well known that the factors of production are composed of land, labor and capital. Land, in the economic sense, can be explained as anything with a productive capacity that has not been created by men or women, but has value created by the community. Labor is any human energy spent , whether by the mind or through brute force, that contributes to a means of production. Capital is mainly what is spent from savings for future production. Under the current system, mainly labor and capital are taxed, while the landed elite make out like bandits with the rents that are created by the community! It is no surprise that civilizations have suffered from vast inequalities since the founding of the first governments.
What we need to fight for is a redistribution of these economic rents for the sake of the people, while at the same time reducing the tax rates on labor and capital. These rents from land are the source of all wealth and are presently held by a small number of wealthy people who will speculate and slow there productive capacity in order to increase profits.
This demand goes out to the people of OWS! If there is one thing we need to change in order to promote equality, environmental protection and job creation through increased productive capacity, this is the solution we need. Please read about economic rent and land taxation in order to fully grasp the concept.
This is something proven in theory and not based on anyone's personal opinion or ideology. While we are divided on many things, it's time to come together with some real demands to benefit the majority of unrepresented individuals of the world. Lets show the top 1% that we know where their unearned wealth is coming from and that we know exactly what is needed in order to bring them back to the real world!
The terminology of your post confuses me. Sorry. Can you dumb it down a little?
Well, throughout history a small number of people have always owned the land. Land and property are two seperate things. Property is the building that is built on the land. It takes your money and your work to built that property. The land sits beneath the property. As far as I know, nobody created that land so the value of the land should go to the community. That is what I am saying with a Land Tax. Everyone is entitled to their labor and their capital, but the land value is a gift from nature in a way. It has a productive value. Trees grow by themselves, corn grows, animals fatten and even the heat from the Sun is useful to everyone.
This rent I just described is why there has always been such a huge income disparity throughout history. The elite have always owned the land. A land value tax can take that rent and use it to benefit everyone, regardless of what you own.
Ah, a return to the true definition of "Real Estate". Will we have serfs, lords, and vassals as well, or we still use the term "Congressman"
This is the oposite of Feudalism that you are describing. Did you even take th time to understannd what this? Under this system the landed elite do not exist.
Well, that's ONE problem with Trickle-down.
The other problem is that wealth naturally tends to concentrate at the top. If you have a policy to help it out, it's only going to happen faster.
Partisan troll
I'm a troll? Really? How in the hell is my post considered to be "trolling"?
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You're right. Capitalism doesn't need a closed economy. It does just fine in a global economy. Which is evidenced by how great the corporations are doing.
But you missed my point (perhaps on purpose).
America is more than just its corporations. It is people. And for the people of America, capitalism is failing.
It is failing because while American is mostly dedicated to capitalism, capitalism is not dedicated to America. Corporations do not strive to improve the country, they just strive to improve profits. So, when its cheaper to send jobs to China, that's exactly what they do. And when its cheaper to buy politicians to change a law than it is to follow the law, that is what they do.
America is more than just it's corporations and shareholders.
Having blind allegiance to an economic model that has no allegiance to you seems like a one-sided relationship.
Just to clarify, I was not espousing socialism. Not in the least.
Socialism and Communism are broken systems.
But trickle-down economics is a disloyal system owing allegiance to no country.
Exactly!! Right-On Noney!!!
Yes.
However, without reversing course on free trade - a position I support - what's the alternative to trickle down? We revert to more progressive tax policies, but, where's the employment coming from?
I see no real alternative than to fight globalization via tariff and trade policy. I don't know of any model that works in a global economy but with a locally preferable result.
Ok, agreed. Thought you might have had something up your sleeve... Neoliberalism has been a curse. I think free trade is the issue underlying all of this whether people know it or not.
Neoconservatism is a curse as well.
What we really need are realists.
There is ONE thought that I had not too long ago, but I've not really followed it out all that far.
Taxation based on US job creation. You lay off people and reduce employment, you pay higher taxes, you create jobs, you get lower taxes. Simplistic, naturally, but its worth talking about.
I've actually heard something like this being discussed by someone in congress, maybe Bernie Sanders? I'm all for it.
How do we fix it short of cutting off trade with the outside world? Or adapt to the new global world?
I'm not sure, but sticking our heads in the sand like the Republicans and saying "lower taxes, it will trickle down" over and over to ourselves isn't going to do anything. Thats for sure.
Buying American made goods is a good start. The more local, the better it will benefit your area.
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You mean the bought and paid for politicians? Or the bought and paid for police?
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Repeating in case you missed it: Just to clarify, I was not espousing socialism. Not in the least. Socialism and Communism are broken systems. But trickle-down economics is a disloyal system owing allegiance to no country.
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WTF are you talking about?
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Read my post above on taxation.