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Trickle-down Reaganomics doesn’t hold water.

30 November 2011 8,870 views 3 Comments

Do not be fooled by the recent push for tax breaks for the top 1% – at the expense of the middle class and lower income groups – that is being trumpeted by those in DC. They are trying to re-sell a failed policy they claim will jumpstart the economy by giving the rich more money, claiming that the rich are the job creators.

Been there. Done that. Have the T-shirt, and it doesn’t fit … except only on the fat cats.  By the way, new businesses are the major job creators.

Here is an excerpt from the following video by Rachel Maddow in which she spells out the facts of the failed Reagan trickle-down economics plan:

“The idea of trickle-down economics is basically this:  you cut tax rates for the richest Americans, therefore the richest Americans have more. They have more money in their pockets, therefore they have more money to spend and invest. And as they spend and invest, the effect of rich people’s good fortune and rich people spending trickles down to everybody else in the economy. A rising tide lifts all boats, right? That was the idea. That was the plan. That did not happen.

In 1980, the top one percent of Americans earned wages about $110,000 a year. By 1990, after about 10 years of Reaganomics, the top one percent had seen their wages rise by 80 percent. Trickle-down economics, though, right? What’s good for the rich is good for all of us, right? Not quite. … what happened for the rest of the country after about 10 years of Reaganomics: flat. A whopping three percent rise in wages in 10 years.

The richest one percent of Americans had an awesome decade. They saw their family income skyrocket by 74 percent. Everybody else, not so much. In fact, the poorest Americans saw their income shrink by more than 10 percent. That was Reaganomics. That’s what Reaganomics did. That was the impact of Reaganomics. That was the result of this experiment called trickle-down economics. The rich did great. Everybody else … still waiting for the trickle.”

– Rachel Maddow

(video 8:26)


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