Economics

Two different but complementary views on "trickle down economics"

"The Trumped Up 'Trickle Down' Economics Myth".

The idea of “trickle-down theory” is nonexistent, except as perpetuated by those opposed to across-the-board tax rate cuts that include the wealthy. 

"Sorry Envious Left, 'Trickle-Down' Economics Is Real, And It's Everywhere".

And while anecdote should never be confused with fact, the story of Coca-Cola helps disprove the emotional arguments against trickle down.  With Coke we see how an immigrant rose to near billionaire status in concert with voluminous job creation, staggering amounts of educational and charitable opportunity, and even more giving by the inheritors of great wealth.


"Labor’s Share of GDP: Wrong Answers to a Wrong Question"

Alan Reynolds:

When people say “labor’s share is falling,” they surely mean income people receive from work has not kept up with income people (often the same people) receive from property: dividends, interest, and rent. But, that crude Piketty-Marx labor/capital dichotomy ignores another increasingly important source of personal income: namely, government transfer payments from taxpayers to those entitled to cash and in-kind benefits.  


"Democracy, Deficit, and Debt: Buchanan and Wagner's classic."

"Keynesian economics changed all this by constructing an intellectual justification for viewing the federal budget as a tool for managing the economy rather than a constraint under which politicians operate.  Keynesianism argued that in recessions budget deficits could stimulate aggregate demand and lead to recovery, while in good times surpluses would both prevent excessive growth and pay back the debt.

"This idea, known as “functional finance,” looks good on the blackboard but has a fatal flaw."