Wednesday, April 4, 2012

Stupidity of Repetition

Finally a solid chapter. The way Frank talks about the fallacy of trickle down economics makes my hair tingle. I like that he addresses the fact that just because trickle down economics has been repeated over and over it does not make it true. His sentiment that just because the personal incomes of top earners goes up, it does not affect hiring decisions is genius! especially since the main touting of trickle down economics is that lower taxes on the rich creates jobs. One might say giving them higher incomes would allow them to spend more and thus stimulate the economy, but in any respect the same exact amount of money would be spent either way.
I notice a lot of people blogging, at least people who identify themselves as libertarian, are now relying on his disdain for policies he attributes to them as well as his definition of a libertarian as the basis of their arguments and not really talking about economics, or simply attacking his credibility as an author or as a source. This logic is unsound, as it does not address any of his economic proposals and only his character and what he defines other people as. If we want to have a discussion about subjective values, save it for church or synagogue or mosque or whatever.
To address one more thing , I like that he debunks trickle down theory while at the same time saying he is not in favor the current income tax model. Anyone wanting to say that he is suggesting heavier taxes on the rich have been thwarted,this is relevant because this is the biggest complaint I have heard in my economic career. He is only saying that the justification of consistently lowering taxes on the rich has absolutely no justification and is simply crony capitalism at its finest.
This last chapter was brilliant, finally i saw a lot of evidence that directly changed the way i viewed economics. I went in a firm believer of trickle down as i knew it, and left with a much better understanding of how the current idea of trickle down theorem is simply crony capitalism fueled by stupidity of repetition.

O btw srry for the late post, saved it on my comp and didnt remember to post cause i got caught up responding to other posts.

And for anyone who tries to say trickle down policies improve the economy of the united states, look at this :

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