Trickling Up Economics
Ever since President Nixon the term, the trickle down effect, was the concept that shaped the fiscal policies and the way government handled the economy. This so called theory in economic lingo typified the fortunes and misfortunes of this nation. During the Reagan years once again the economic fortunes and misfortunes of millions of Americans were at the mercy of this so called economic standard bearer for the US economy. So what really is the idea behind the "trickle down effect"? And, why is it so ambiguous in it's nature as the rational that so many of this nations 1% continue to advocate? To answer these is first to understand the original concept of trickling down economics.
Proponents of this trickle down effect really believe that in a free market supposedly like the United States has which is uninhibited by heavy taxation and other forms of government controls, will cause an increase in overall wealth for the whole nation from which wealth will trickle down from the the 1% making the 99% better off. These proponents do believe that the trickle down effect is actually working just as it has always had. Maybe the 1% can explain why this nation has the greatest income disparity gap in history and why so many millions of Americans are now relying on food stamps if this trickle down effect is actually working?
Too many trickle down enthusiasts insist that abject poverty will actually decrease. But, what they don't quite understand and can't relate to is poverty is poverty no matter the degree of depravation. For the past 30 plus years our whole economy in America has been sanctioned by the wealthy proponents that recommend using the trickle down effect as the rule of thumb sort of speaking in maintaining the status quo. It is time for a reality check. The wealth distribution gap that has continued to widen has only led to a larger gap in power and influence by the wealthy over the majority of the population of the United States. This all proves that the trickle down effect has only led the United States down that slippery slope of economic and social decay.
When the trickle down effect continues to extend it's influence in economies what actually happens is a reversal effect that really started as far back as the early 1990's. This trickle up effect is at the expense of the majority of the population. Contrary to what many economists have originally thought what trickling up does. Today, what is happening is that the majority of the population actually were not beneficiaries of the trickle down effect..They never were. Instead, were victims of economic concepts and governmental policies that only benefited the very wealthy. It is the 1% who benefit the most now not because the trickle down effect has rendered the majority of the population able to have the purchasing power that boosts productivity that stimulates economic growth but, have been so cash strapped because of it. Today, the ability of so many millions of Americans to save or spend enough to stimulate economic growth as been squandered by the 1%. When we look closer at the true after tax incomes for the 1% we find staggering figures. From 1979-2008 medium incomes incomes of the 1% rose by more than 300%. This after adjusting for inflation. That's an increase of over $1,000,000 per household. Now compared with the majority of the population whose incomes only rose of less than $2,400 per household. If this doesn't trigger that something is amiss in our economic policies consider just in 2008 the 1% had an income increase of over $1.3 million that is up by $88,000 from just the prior year.
Since the 1970's the United States has seen incomes increase for the 1% by more that 300% while the majority of the population their incomes have dropped by over 80%. Now lets look at corporate America and what the trickle up effect has on our economy. In 1980 the typical CEO made a little over 50 times what their average employee made. Today, the CEO in some cases makes more than 500 times the amount their John or Jane Doe employee makes. Over the past 35 years the rich have become the only beneficiaries of the trickle up effect while the rank and file American have seen the American Dream as just that a dream that will never come true. In both instances whether the trickle down or now the trickle up effect both have benefited the top 1% leaving the majority of the population becoming third world citizens. The wealth and income inequality in America today is by far the worst of any nation in the industrialized world. The United States has really fallen in line with many Third World countries. The pervasive argument today by many is so what does it matter if this person gains and another looses is flawed. Any economy in which most of it's citizens are doing worse year after year as in the case of the United States will not recover. In fact the nations stability and national security is being severely compromised because of the growing wealth disparity gap.
For the past 35 the benefits of increased productivity have gone straight to the top 1% leaving the middle class almost extinct. It should be pointed out that from the end of World War II the productivity in America increase at the same rate in each income level. It was during this period that workers were rewarded for their productivity with a commensurate increase in wages. But during the late 1970's productivity continued to increase but workers wages stagnated and even were reduced. The trickle up economic principle took hold. The largest share of the nation's economic growth over the past 30 years has gone to the top one-hundredth of one percent, who now make an average of $27 million per household. The average income for the bottom 90 percent of us is only $31,244. And, the gap is only getting wider. No wonder the United States is in such peril.
The question our political candidates should be asking but haven't: Is how to maintain productivity while regaining the middle class and equalizing the playing field in our economy today? Too many of our elected officials have failed the American public by not addressing the ways to narrow the income gap that only threatens to dissolve this nation if it remains unchecked. Policy after policy that only favors the wealthy continues to push this nation closer to the abyss. We cannot and must not continue with the rhetoric that says one thing but ignores the real issues that would narrow that income disparity gap.
Trickle down or trickle up economics just doesn't work. Plain and simple. So what would work? The answer lies within National Economic Reform with it's Ten Articles of Confederation. The political will is the only thing that is stopping the implementation and securing this nations future. Only when the conditions are met outlined in National Economic Reform can the Williams Theory of Economic Evolution be fulfilled and our nations stability and national security be secured.