Myth: Nearly a third of Americans still believe the discredited “trickle-down” theory that tax cuts for the wealthy results in greater wealth for everyone.
Fact: Even David Stockman, the chief architect of trickle-down and supply-side economics admits it didn’t work.
It’s pretty universal that no one likes taxes, and everyone loves a tax cut. But many have come to believe that taxes are higher than ever–even though they’re not. Most puzzling of all, many Americans believe that tax cuts for the wealthy spur both job creation and increased tax revenues through trickle-down and supply-side economics. Yet experiences in Iowa, Louisiana, Kansas, Wisconsin, and Oklahoma have all shown the failure of supply-side and “trickle-down” theory.
What do the facts say about trickle-down economics and its effect on the middle class? Can regulation help, or is it just a burden? And where do government programs fit in?
Last Friday, the U.S. Bureau of Labor Statistics released data showing that real wages have decreased over the past year. But how can that be when GDP growth is strong, and unemployment is low? There’s a few reasons, ranging from the ineffectiveness of trickle-down economics to a decline in unions.read more
Collateralized loan obligations are the hot thing in today’s investment market. But they’re nothing more than the 2018 equivalent of junk bonds or mortgage-backed securities. And when that market crashes, ordinary people will lose while the rich get even richer.read more
The term “stock buybacks” refers to when public companies use their profits to purchase their own shares on the open market. This creates short-term benefits for CEOs and the company’s stock prices. The tactic was illegal until the Reagan administration wrote a rule that gives companies “safe harbor” to repurchase their own stock.read more
When we’re looking at wage value, we have to look at inflation to see the full impact. As reported by Vox, data from Payscale shows that when we adjust American wages between Q1 and Q2 of 2018 for inflation (after the tax cuts went into effect), real wages have actually dropped by 1.8 percent.read more
Jordan Peterson, a well-respected figure within the alt-right movement, claims that liberals are seeking equality of outcome. This is, of course, is a myth. It is being perpetuated by the alt-right as means to smear the progressive movement.read more
July 6, 2018, will probably make economic history: it’s the day that President Trump’s first tariffs on $35 billion worth of goods from China went into effect. Those tariffs will hit farmers, ranchers, and factory workers—many of whom voted for Trump—the hardest.read more
The May jobs report shows 3.8 percent unemployment, a level unseen since the 1960s. June’s report had a slight uptick in unemployment to 4 percent, according to the Bureau of Labor Statistics. These are all signs of a strong economy. So why doesn’t it feel strong?read more
Capitalism as a Ponzi scheme: that seems like a belief that only the most radical left-wingers might hold. But you might be surprised to find out that the same views are espoused by people like conservative mathematician Eric Weinstein.read more
Teachers across the country finally decided they’d had enough, and they have been protesting to let the world know. From increasing student funding to providing current textbooks and securing a living wage for themselves, unions have been instrumental in achieving their goals.read more
Progressive taxation is a concept first introduced in the 1780s by Thomas Jefferson. And until the 1980s, it was still seen as the best way to tighten the income gap between the wealthiest and poorest Americans. Looking back, Jefferson understood something important that we’ve lost track of today.read more