Ronald Reagan’s old “trickle-down” economic policy was based on giving tax breaks to the wealthy, including corporations, so they would make more money, and in return they would invest that money, feeding the economy and all downstream. However, this policy has proven to a huge failure. Yet, we have continued to stick with this failed policy for over 30 years now.
The wealthy don’t want to invest in ways to benefit the overall American economy, they want to invest in ways to benefit themselves and the economy of the 1%. They have no incentive to invest otherwise. When their marginal tax rates were 70%, it made sense to invest and get tax credits rather than “pay taxes” without any resulting gains to themselves. But now that the wealthy have been the recipients of continuous tax cuts over the past 30 years, why would they. They can either hide their wealth away in a bank in some foreign tax-free haven, or they can invest in risky speculative, sometimes illegal, opportunities that will return them massive wealth versus investing in safer long-term investments that may actually benefit the general economy.
And what are they doing with this excess wealth that is “not trickling down”; they are buying politicians so they can influence and pass legislature that benefits them even more at the expense of the other 99%.
Yet our elected representatives keep slapping us in the face with all this austerity crap about cutting costs and benefits that only impact the 99% while giving more tax breaks and benefits to the wealthy and corporations.
When is it going to change? Don’t wait for your duly elected congressional representatives to do any about it, because this excess wealth has already bought and paid for them to do their bidding…not yours.