With the current state of our economy, it’s become indisputable that Reagonomics is a failure. There are now substantially fewer subscribers to the belief that unfettered free market and cutting taxes on the super-rich will keep our economy buoyant and wealth will trickle down.
To me, Reagonomics never made sense. We depend on the super-rich to spend their millions on goods and services, and the money is supposed to “trickle down” to middle-class Americans? What if the super-rich decide to hoard their money in Swiss bank accounts? What if the super-rich invest in overseas properties, and spend 90% their time and money overseas? How would these money choices by the super-rich cause wealth to trickle down to middle-class Americans?
Plus, I find it unethical to put so much dependence on any section of the American population to be as materialistic as possible. It’s unethical to put into people’s minds that buying lots of stuff is patriotic or that buying stuff, while increasing wastefulness, is required for America to prosper.
But all you have to do is look at the ever increasing squeeze of middle-class to see the failure of trickle down economics. The only thing that has trickled down is the anti-socialism of the super-rich.
Sean Hannity and Rush Limbaugh – both millionaires, both born into wealthy families, both never had to work manual labor job – complain about socialism because, if there’s even the slightest curbing of the unfettered capitalism they’ve always been accustom to, they may not be able to buy that fourth mansion in the Caribbean.
The problem is, younger low-income conservatives, weaned on the sensationalistic invective of Hannity, Limbaugh, etc. persist in believing they are on the cusp of being millionaires too, but it’s the "socialistic policies of the Democrats" that prevent them from achieving this American Dream.
And retired conservatives weaned on the Hannity, Limbaugh, etc. believe the reason they never became millionaires was because of the "socialistic policies of the Democrats."
It makes sense for the super-rich to hate socialism. It makes sense the super-rich spend their days working to indoctrinate the electorate to vote for anti-socialist policy-makers. But for a lower income person to hate socialism, shows an entrenched misunderstanding of socialism.
Though Obama is no socialist, the McCain campaign is hoping all the anti-socialism that has trickled down to frustrated conservatives, like Joe the Plumber, will inspire them to vote againt any Democrat.
So Joe the Plumber wants to know why he should get taxed more for making over $250,000. In thoughtfully answering Joe, Obama brought up a good point – it’s ridiculous for business owners to whine about more taxes when their customers are less taxed, and therefore more willing to spend money at Joe's business.
Think about it: Usually the super-rich are not the ones shopping at your small town mom and pop store. If the middle-class have more disposable income, and the tax dollars from the rich are going toward better roads and public transportation (instead of that fourth mansion in the Carribbean), then maybe small businesses will thrive from repeat business.