Does Trickle-Down Economics Actually Work? | Robert Reich

Former Secretary of Labor Robert Reich debunks the three big myths that trickle-down economics is based on.

To the extent the Republican Party has any economic platform at all, it’s trickle-down economics. Unfortunately for the GOP, it’s based on three giant myths.

Myth #1: Tax cuts for corporations and the rich create more and better jobs. Wrong.

Myth #2: Tax cuts for big corporations and the rich spur economic growth. Wrong again.

Myth #3: Deregulation spurs economic growth. Not a chance.

So don’t fall for trickle-down nonsense. It's nothing more than a cruel hoax to make the rich even richer.

#CorporateTaxes #TrickleDown #Reaganomics

[hhheee]

Winston Churchill once famously observed that Americans will always do the right thing, only after they have tried everything else."

[emilymanhart]

My Grandfather taught economics, and I'll always remember him saying "Money is like manure. It makes thing grow when you spread it around, but if you keep it in a big pile it only stinks and attracts flies."

[jeffnewman]

40 years and we're still waiting for it to trickle down

[wolfiefink]

I remember when I was like 13 growing up in a conservative household asking “what if we made Corporate taxes high and gave tax credits for increasing wages since that’s the goal anyway” and I got a long lecture about freedom.

[bobyoung]

None of this "trickle down" money has trickled down to me yet and I've been waiting 40 years. Maybe Reagan forgot to turn the handle.

[Missy-Missy]

"Conservatives say if you don't give the rich more money, they will lose their incentive to invest. As for the poor, they tell us they've lost all incentive because we've given them too much money."( George Carlin)

[coleengoodell]

They pushed productivity that did go up. At the same time froze any pay increases for the workers as our out of pocket costs for health care went up. The CEO's of course got their bonuses and increased perks. For the first time in my career I slowed down. I gave them what they showed me I was worth to them. I'd had enough.

[dienekes]

I was just on an "all-hands meeting" at my multi-national company and they were bragging about the fact that, despite not giving out raises for the last 2 years, they were able to spend $1b on stock buy-backs. It's disgusting that so many people don't understand how economically horrible that action is.

[rogerlonghorn]

I buy 100 pieces of candy each Halloween and give 90 pieces to the first kid and 2 pieces to the next 5. I know I'm doing the right thing because that first kid will trickle down the candy to all the other kids.

[ianpatrick]

I have always wondered how anyone could ever be excited by the word "trickle".

[Occam]

“Yeah but if we cut taxes again it’ll work this time.”
-Every Republican-

[sw]

Rich people don’t let money “trickle” anywhere, that they have every dollar possible, means you are consistently underpaid.

[jimcordell]

What a rising tide really does is it lifts those who own boats and drowns everyone else.

[toniat]

Amazing how tax cuts for the rich get processed by the IRS so quickly. However, a lower middle class, barely above poverty person has to wait just about the whole tax season to get a tax refund😒

[gelaende]

Did nobody tell you? Money always floats up. It's shit that trickles down.

[burnitdwn]

I think we should call them what they are.

There are not trickle down "myths". There are only trickle down "LIES."
Blatant, bold LIES.

[melissacummings]

Do these corporations use mail and road infrastructure? Yes, so tax corporations

[jeffreycarman]

It’s also important that corporations don’t like uncertainty, instability, and change. When one president rolls back regulations and another reinstates regulations, it causes a whiplash to effect and even more instability and uncertainty. If the regulations are kept in place, it not only protects the bulk of us from greedy unscrupulous corporations, it also fosters security and stability for businesses to succeed.

[wrayoflighttube]

I remember hearing about trickle down economics in the eighties and thinking it was the stupidest thing I’d ever heard of. Thank you for breaking down the facts.

[northsparrow]

Professor Reich, I prefer trickle up economics.