Q&A, TRICKLE DOWN ECONOMICS: Global Factory Activity Stalls - WSJ.com

Global Factory Activity Stalls - WSJ.com

Question (JS):

"It’s pretty obvious the “Trickle Down Theory” does not work!"


Answer:

Sorry but you may have failed basic skills in college or probably high school.

The unemployment rates (as reported in this week's Barrons) were 4%, 9% and 14% respectively for those with college, a high school diploma and no high school diploma.

So, it would seem as though liberal views of education and reward have failed. Not trickle down but liberal trickle up!

Liberals believe in equality of outcome not of opportunity. Thus, things will have to be given to you and taken from someone else. You really don't need to worry about anything on the liberal 'plantation' - they know you can't compete with Chinese peasants so why should you try!

Those who can compete in terms of education are doing OK. Those with no education (they even failed the liberal view of education) are cut out of employment by having the government raise the price of labor. But, of course, the liberals mean well. (Something about the road to hell and good intentions...)

This, of course, is exactly the opposite of what Kreiger, the President's new appointment to his Council of Economic Advisers would say with his right hand - i.e. that minimum wages (and the indirect costs of hiring someone) are meaningless. Of course, the President with his left hand wants to subsidize job creation.

Some people would say people are talking out of both sides of their mouth.

You also should consider that the US has 3% of the world's population and consumes 25% of its resources.

As a country with incomes above the regression line, it has to work to stay there. Liberals believe it happens by magic - that anti-business regulations and taxes, etc. don't matter.

Of course, there is utter disbelief that policies matter and you clearly don't believe in supply and demand or your right to buy a cheap toaster at Walmart vs. a very expensive one.

Oh yes, if you need a car, thank the government for raising the price without the added cost to you going to higher wage rates. But, then again, this is liberal economics.