Does Trickle-Down Economics Actually Work? | Robert Reich
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- čas přidán 13. 04. 2021
- Former Secretary of Labor Robert Reich debunks the three big myths that trickle-down economics is based on.
Watch More: 12 Myths About Taxing the Rich ►► • 12 Myths About Taxing ...
To the extent the Republican Party has any economic platform at all, it’s trickle-down economics. Unfortunately for the GOP, it’s based on three giant myths.
Myth #1: Tax cuts for corporations and the rich create more and better jobs. Wrong.
Myth #2: Tax cuts for big corporations and the rich spur economic growth. Wrong again.
Myth #3: Deregulation spurs economic growth. Not a chance.
So don’t fall for trickle-down nonsense. It's nothing more than a cruel hoax to make the rich even richer.
#CorporateTaxes #TrickleDown #Reaganomics
40 years and we're still waiting for it to trickle down
@Solstice of Snow did you not watch the segment? I think they made a strong case that by making the wealthy wealthier the only people who benefit are the wealthy. Wow! Who'd of thought!!!
@Solstice of Snow yeah cheap consumer goods from China at the expense of what use to be American jobs. The owners, executives, and shareholders grew wealthier while regular workers lost their jobs. But hey people who were still employed were able to buy cheap crap that they didn't need anyway. Big win there!
@Solstice of Snow Don‘t conflate scientific advancements with economical improvements. Fact is most people are getting poorer while rich people are getting richer. This isn‘t about luxury goods everyone is suddenly buying. Just because a lot of people can afford TVs due to them getting cheaper doesn‘t mean people are seeing the wealth trickle down. Stuff isn‘t getting cheaper because of tax cuts. In fact you can see that people can afford less today simply by looking at food and housing. How many millenials can afford to buy homes right now compared to their parents when they were the same age? How many more people are facing food insecutities each year?
Something has been trickling down alright. Them pissing on us !
@Solstice of Snow There are studies that literally measure income inequality. We have surpassed that of the French revolution last summer. But yes continue with you're debunked talking points.
Winston Churchill once famously observed that Americans will always do the right thing, only after they have tried everything else."
@bobcat baldfat drunkbeater Don’t forget France. Lol.
That sums us up. Or until younger generations learn about the bs and lies forced down our throats and chose to vote socialist, which is probably gonna be the future of America tbh. It gets bad a reputation but too many people are either stuck, forced, or born into a shit life and the common response to work harder cannot help them nor justify someone having more than an 8 figure bank account. No reasonable argument to support filthy rich, none at all.
Amen!! I wish they'd hurry up and exhaust all those other choices and get to the right thing before their country collapses!
@bobcat baldfat drunkbeater America has been endeavouring to adopt the UK's former mindset. At least the UK evolved beyond that.
@bobcat baldfat drunkbeater If you put it that way and look at America, I guess you can say the apple doesn't fall far from the tree.
My Grandfather taught economics, and I'll always remember him saying "Money is like manure. It makes thing grow when you spread it around, but if you keep it in a big pile it only stinks and attracts flies."
LMAO! Bravo to your grampa. I once heard another analogy: Money is like the water in a stream. It stays healthy and clean if it flows, but gets stagnant and foul if dammed up.
Funny and smart man.
🤣🤣🤣 brilliant! loove the metaphor there!🤣
similar the how courage works out" "
Courage is that rare coin, which returns TENFOLD to the spendthrift, yet leave the Miser.. PENNYLESS! 🤩
❤
Classic. RepubliCONS must be stopped
None of this "trickle down" money has trickled down to me yet and I've been waiting 40 years. Maybe Reagan forgot to turn the handle.
@Solstice of Snow That is a stunning generalization. Please provide something more substantive to support it.
@Paul Crozer I'm honestly tired of people who said they don't understand how people can keep voting for Republicans or how conservatives need their heads examined. You all are just not looking at the right place: Christianity.
For generations, the people of America have been poisoned continuously by their pastors for justifying their belief in magical thinking, toxic nationalism, racial bigotry, homosexual discrimination, extreme transphobia, etc... all of which are elements in degrading the country down into rabbit holes. Without Christianity (and voter suppression), Republicans would never be able to win any election ever. Americans treat their democracy as a democratic theocracy, in which only people of a certain belief are allowed to vote and be elected even though that belief has shown itself to be anti-intellectual, anti-science, anti-life, and anti-democracy.
@@Zach-ju5vi It costs extra because of inflation numb nuts. Secondly technology costs have decreased by factors of upto 100x due to better technology. The cost of technology per transistor is a huge deal less and everything made now uses them.
Lastly Americans have more debt now than at any time ever before. Buying things using money you dont have isnt real affordability.
Again youre another pseudo intellectual who understands nothing about modern economics.
@Solstice of Snow Stop comparing the perks of modern society as something that has anything to do with "trickle down theory".
Giving corporate Billionaires tax cuts and bailouts has nothing to do with the advancement of science. Most scientific breakthroughs come from people who entered the education system from lower or middle class families or from outside of the US. Their inventions making life better in general has nothing to do with the ultra rich who as it stands most are parasitic drain of funds from the economy. Eg. Hedge funds, and monopolies like Amazon centralising wealth.
@Solstice of Snow
Trollio. You can't even spell, or use English correctly. Obviously your trickle down theory hasn't worked for your Education. Maybe that's why you don't understand even the simplest thing. Like this video 🤤
I remember when I was like 13 growing up in a conservative household asking “what if we made Corporate taxes high and gave tax credits for increasing wages since that’s the goal anyway” and I got a long lecture about freedom.
The propaganda works!
😂
@Solstice of Snow You’re right, there isn’t a good correlation between rates and revenue... but there is a correlation between rates and overall wealth inequality.
@Solstice of Snow those who cite the Laffer curve expose themselves as either frauds or morons
Conservative Republicans hide behind abortion n prayer in schools. They're hopelessly ignorant n unhealthy in all aspects. Eugenics must be applied to cease the ignorance
I have always wondered how anyone could ever be excited by the word "trickle".
You are my hero.
They like golden showers?
"Cake for me an my buds; crumbs off the platter for the rest of you."
That is what sold Trumpolini
To be fair, we know at least one Republican who would get super excited by things trickling... allegedly.
"Conservatives say if you don't give the rich more money, they will lose their incentive to invest. As for the poor, they tell us they've lost all incentive because we've given them too much money."( George Carlin)
George Carlin was a genius and a treasure. Good quote.
@My Man if people used the compassion God gave each of us then there would be NO beggars.
@My Man "The way you see people is the way you treat them, and the way you treat them is what they become." (Johann Wolfgang vongerichten Goethe)
@My Man go make comments on John Stossel's videos.
@My Man all I know about Nietzsche is that he despised Victorian middle-class values. You probably know more about Nietzsche than I do.
I was just on an "all-hands meeting" at my multi-national company and they were bragging about the fact that, despite not giving out raises for the last 2 years, they were able to spend $1b on stock buy-backs. It's disgusting that so many people don't understand how economically horrible that action is.
The very reason that t***p loves the "poorly educated", the ones who are convinced they'll hit the lottery some day and can finally live the "American Dream". If they had two active brain cells, they would realize it's a rigged game for the 1%.
Stock buybacks were a contributing factor to black Friday of 1929... And were illegal until republicans made them legal again... This will lead to tears.
They pushed productivity that did go up. At the same time froze any pay increases for the workers as our out of pocket costs for health care went up. The CEO's of course got their bonuses and increased perks. For the first time in my career I slowed down. I gave them what they showed me I was worth to them. I'd had enough.
I left a company for that. They promoted my boss and were going to let me do all his work without promoting me, increasing my pay, or hiring someone to help.
It made me so happy when I learned that instead of padding his P&L statement at my expense, helping him getting promoted, they ran him off.
Another note: we were in the process of a merger set to happen in about 4 months. He promised that they'd consider it afterwards, but you don't have to be a genius to realize that's not how corporations work. Closing terminals during exploration for a merger did not look good. He tried saying I couldn't handle the pressure to cover his own ass, but my dad had been working there for 20+ years (as a driver) and didn't let that excuse slide.
At the same time, wages are increasing because employers are trying to attract labor from a limited labor pool. Huh.
@@rcampbell4967 - Yet those wages still aren't where they should be, and you can bet the raises and promotions will be as limited as usual.
@Coleen Goodell "I gave them what they gave me..." Everyone should take heed of this phrase. Thank you!!
@@julietfischer5056 Doesn't matter where you think those wages should be. Wages are set by the market based on the value of the labor. I know mechanics that make six figures because they invested in themselves to improve their skills and they don't mind putting in the time.
What a rising tide really does is it lifts those who own boats and drowns everyone else.
It’s not a rising tide, their in hot air balloons and we’re all standing on the ground.
@@OpenBiolabsGuy Dont cut on someones great post.
Republicans: "A rising yacht lifts all tides."
Peter Eng like John Kerry’s yacht?
I buy 100 pieces of candy each Halloween and give 90 pieces to the first kid and 2 pieces to the next 5. I know I'm doing the right thing because that first kid will trickle down the candy to all the other kids.
Like leaving the whole bowl out with a Take One sign, because that totally works
The rich take the wealth and tax cuts from the Republican politicians and allow the pollutions and high health care costs and high housing costs to trickle down to us! Oh, the only other thing that trickles down is the bribes that these corrupt Republican politicians receive from the rich for all the tax cuts and deregulations that they have done for them! That’s “Trickle Down” in a nutshell.
Does this kid have employees and vendors that he pays in pieces of candy?
Do you realize how stupid you sound?
@@jluvs2ride Candy is not legal tender so your comment is stupid.
@@grandwonder5858 Privatize profit, socialize costs (monetary and otherwise).
Rich people don’t let money “trickle” anywhere, that they have every dollar possible, means you are consistently underpaid.
They let it trickle into their Cayman Island and Bahama Bank accounts.
@@tabularasa0606 Exactly. Instead of trickling down into the economy, it flows out of the economy.
Nah that is exactly the trickle that workers get,those that they have to let slip.
The cool thing about the US is that if you feel like you are consistently underpaid, you can look for an employer that pays more. Can’t find one? They you may think your labor and skills are worth more than reality will bear.
@@bigbubba4314 maybe. But many rich people just like to take advantage of others, more for them and they don’t care about others.
Amazing how tax cuts for the rich get processed by the IRS so quickly. However, a lower middle class, barely above poverty person has to wait just about the whole tax season to get a tax refund😒
@Solstice of Snow Pretty normal how people complain about the rich not paying their fair share when they use our infrastructure and government services way more to run their business and then only either only pay a little bit more in taxes or pay nothing at all, as Bezos did in 2007
“Yeah but if we cut taxes again it’ll work this time.”
-Every Republican-
In 1964 Johnson was elected president and reduced the top marginal "income tax" rate from 91% down to 66%, today it is 37%
See, we have to blame the Democrats in between. If we don't, the simpletons might begin to question whether helping wealthy people is necessary.
Reich is a lying Marxist. Republican tax cuts and deregulation got us 3.5% unemployment, the fastest rising wages in ten years, and record low poverty.
Tax cuts worked for JFK, Reagan, and Trump. Democrats act like politicians can spend our money better than we can.
@@DavidAdkins78 You have no idea what Marxism even means. Second, Trump gave us trillions on the deficit and tax increases on most everything you buy thanks to tariffs, put farmers out of business and literally committed suicide over it. Third, before Regan most people didn't have to have two people bring in income just to survive. Now people have to have 3 jobs just to stay ahead.
@Solstice of Snow Like the DoD who needs hundreds of billions more because "US is now strong"? Oh, but you conservatives have no issue wasting money on that pit!
Did nobody tell you? Money always floats up. It's shit that trickles down.
Lmfao
@Solstice of Snow False rhetoric.
@Solstice of Snow Youre a fool. Go and see the stats and learn about modern economics. Your knowledge is heavily outdated and based on knowledge from the 1960s, but more likely it seems you just don't understand how it works in the modern economy. There is no proof in modern US economic that trickle down theory has ever worked. NOTHING. Yet plenty evidence statistically proving the opposite.
@Solstice of Snow Well, wanna know what *actually* led to a quality of living increase? Legislation. When did the US have their biggest economical boom in the last few centuries? Right after WW2. Why? Not in small part due to Roosevelts New Deal, something that improved worker rights.
Sure, a healthy economy will improve the quality of life, but tax cuts do not result in a healthy economy. In fact, quality of life has been better in the past. In 1965 the federal minimum wage was $1.25 dollar an hour which doesn't sound much until you adjust for inflation at which point you are left with about $10.50 today.
A healthy economy shouldn't see the richest 10% owning about 70% of the wealth. If money doesn't float up, how do you explain that rich people have gotten much richer and poor people have gotten poorer (in terms of buying power) in the past few decades?
The only way money trickles down is when the rich are actually forced to pay higher wages and to actually pay their taxes. Tax cuts just increase the CEO's profit margin and they aren't sharing.
You don't get rich by being generous or even fair, you get rich by min-maxing spendings and income. And this means that the only way to make the money trickle down is to assure that they cannot minimize their spendings by quite as much.
@@nboy7 Who's giving you this data ? Do they really know nothing came from the trickle down policy as to their policies ? From what I'm seeing & have seen from Govt & media. I find a lot of what they say & print as BS. I lived that trickle down policy during Reagan. Jobs were plentiful in my area. And you could usually find a better one within the same week. Could that have been due to Reagan or past policies other Presidents put into effect ? I don't truly know & doubt most people would know either. I do find myself giving credit to Reagan because he was the President. Maybe we need to ask ourselves are these people willingly going in debt for things they don't need but want. I see many people driving cars they can't afford, phones, & sneakers (shoes ) they can't afford. But they wanted them. As long as people are willing to go in debt for overpriced junk. Are we talking essentials to sustain life or the niceties that makes life a little more comfortable ?
Do these corporations use mail and road infrastructure? Yes, so tax corporations
And who will bribe the Senate then? Think, man, there is an Oligarchy to satisfy and a peasantry to suppress... SOMEBODY'S got to stop the vote...
Corporations may great use of our executive, legislative and judicial branch as well. If corporations are people as conservatives claim, we should tax them like people.
@@kokoleka808 I don't think we should tax people.
"Do these corporations use mail and road infrastructure? Yes, so tax corporations"
So much stupid on this page. Where to start?
Road infrastructure is paid by fuel taxes already.
Mail is paid by postage.
Corporations ARE taxed.
@@thomasmaughan4798 Fuel taxes are a fixed amount per gallon and haven't even close to kept up with inflation. They also probably weren't ever adequate to upkeep the US's sprawling and often excessively wide road network.
Postage would be enough to pay for the mail service if corporatists in Congress weren't forcing the USPS to prefund retirement benefits decades in advance though.
Everyone knows what rolls downhill and it ain't wealth and it doesn't trickle. Thanks for all that you do Robert; your shoes are going to be hard to fill.
What policies did Clinton do under Roberts suggestion to benefit the lower income earners (NAFTA) ? His shoes are hard to fill if you buy his BS. He's even admitted to his time in the White House as a failure. And here he is spouting the same rhetoric today. I would like to see how much he is worth financially. Is he willing to put his wealth where his mouth is ? I'm not seeing it. Why isn't he producing videos showing people how to grow their wealth ? Why don't he help entrepreneurs with tips to benefit or start a business ? Because all he knows is how to produce videos targeting policies that could be effective given enough time to actually work. You see that's why most of the policies never work on both sides of the political spectrum. They are designed this way. It's a blame game while the powers that be, get wealthier. And accumulate more power (taking liberties from citizens). Govt is for oversight, nothing more. To ensure people are given a fair shake & your liberties are not encroached upon by another. Some regulations are needed to ensure people are given their freedom to compete. They are not destroying the planet for future generations. But a lot of laws, taxes & regulations restrict your rights as a free citizen. Govt does not know how to spend your money better than you. As we have seen with our deficit. Guess who created roads, schools, & just about everything we use these days before Govts got involved in running your life ?
"Everyone knows what rolls downhill"
Severed heads? We need a repeat of 1789.
Ok fine , so the republicans care about the rich. Are you really trying to say, with a straight face, that the Democrats don’t? Clinton signed NAFTA into law and Obama tried to pass TPP ( outsourcing) corporate elites on both sides push for open borders to flood the job market so we can all fight for scraps. But keep believing that the Democrats care about workers 👌
Thank you, that's almost exactly how I put it in my head!
I think we should call them what they are.
There are not trickle down "myths". There are only trickle down "LIES."
Blatant, bold LIES.
Really ? From my personal experience in the late 80s into early 90s (Before NAFTA= Clinton). I had no problem quitting one job to only get another the same week. With better pay & benefits. That was the results of trickle down economics. But then who needs a better job ? And paying less taxes for Govt programs that are totally ineffective. Robert had a opportunity to improve our economy under Clinton. He's even admitted in his video he failed with his same rhetoric. But yet here he is going on with the same nonsense.
@@m1a1abrams93 Huh, wow, technological progress had no impact on the economy or jobs, wow, share what you are smoking. That's one powerful fantasy you indulge in.
@@brennagarten317 Yeah funny how most of that technological progress is in other countries (mainly China). I used to fix robotic welds that was when it was broken down. Yes technology has some impact but not to the extent you believe. You still need to feed it materials & observe it's operation. I have yet to see technology replace my job & many others. It makes it easier at times. And then the progress bringing foreigners here to be trained to take someone's job for less money. Real progress there.
@@m1a1abrams93 Sorry, I hadn't meant to agree with you, just wondered what you were smoking that affected your perceptions. Corporate welfare (trickle-down, trickle up) has resulted in many failures for the common wealth of all Americans. For hundreds of years there has been a labor shortage in US (hiccup in Depression) resulting in higher wages and increasing middle class, ending in 71-72. A rigorous analysis of trickle-down econ would not begin and end with your personal employment history.
@@brennagarten317 Yeah let's go Joe. More welfare for the lazy. Let us see how much these so called technological advances cost the future. I guess Govt created all these technological advances ? And you buy the labor shortage ? Get lazy people off Govt tit we wouldn't have a labor shortage. lol
I remember hearing about trickle down economics in the eighties and thinking it was the stupidest thing I’d ever heard of. Thank you for breaking down the facts.
Trickle down basically depends on the charity of the 1 percent. That is not how you run an economy. I feel a lot of conservatives have been lied to for so long that they do not want to believe their ideas are holding the country back.
@@kappadarwin9476 They'd have to acknowledge and admit what the rest of us already know: generally, CONservative policy on anything has always been about holding everyone else back. They're willing accomplices, not innocent dupes.
Bush I initially called it voodoo economics during the 1980 primary. After selling his soul to be the VP pick, he totally flipped and got on board with the whole Milton Friedman “supply side” economics. It was BS then, and it’s BS now. But it is now a part of the Republican DNA.
@@Zach-ju5vi We all see you little trifling trolls all over CZcams comments. Reagan's Urination Down Economics is laid out in all it's stinking septic tank glory for all the world to smell. You remain insignificant.
And yet 40 years later your gut was right the whole time! There is something to that!
Professor Reich, I prefer trickle up economics.
Me too. That, not trickle-down, is what kept the country's economic picture from drastically tanking.
If you mean "Piss on the nasty rich," I agree... Not every millionaire is a bastard. But ALMOST every billionaire IS. Exception possibly Elon, but he has his OWN brand of weird.
You mean bubble up economics?
My mom would love this guy!
What an awesome disclosure.
Love this man!
It’s also important that corporations don’t like uncertainty, instability, and change. When one president rolls back regulations and another reinstates regulations, it causes a whiplash to effect and even more instability and uncertainty. If the regulations are kept in place, it not only protects the bulk of us from greedy unscrupulous corporations, it also fosters security and stability for businesses to succeed.
Anyone who paid attention to Trump's cabinet appointments understood that his regime was one long smash and grab. They looted and gutted every agency, every regulatory body and process.
We will probably never fully understand the extent of the damage his toxic and corrosive regime caused to America and our institutions.
@Solstice of Snow No we aren't. Republicans are mis-spending trillions on large unnecessary weapons systems and to prop up the outdated fossil fuels industry. But otherwise those things that got cut were the necessary things that make society and what made America great in the first place. You people are so foolish that you gave away all the things we built from our war dividends after world war two out of some misplaced fear of socialism. duh. how sad.
I have not had a raise in five years. I am waiting for the PRO ACT to get passed so I can get a pay raise.
That's criminal. You deserve a pay raise. Big corporations have been f-king us for decades.
You may get a raise. But guess what else you can expect ? Higher prices for goods. So did you get a raise ? I would be better served with a fair tax on income. I voted for Trump the first time because he offered this with a % to income. Which he quickly forgot once elected. So disappointing that no politician will push for this. Make the system easier not more complicated. Get rid of all deductions & returns. And pay a flat percentage for the different wealth earners. Say you make less than $100 thousand you pay 10%. $100- $500 thousand you pay 15%, etc. Property tax should be done, once a property is paid for. And school taxes should be paid, for the same duration as you attended school. And paid to the schools you attended. I should be paying taxes to Catholic schools not public. Or at least the larger percentage. And for (K-12) 13.5 years. And this number doesn't even include time off for summer & holidays.
I work for a local municipality and we didn't get a raise from 07-14. I paid $40+ a month for Healthcare, now $190+, my pension contribution has DOUBLED AND I have a $2500 YEARLY DEDUCTIBLE NOW. I GROSS $504 MORE biweekly than in did in '07, I ONLY BRING HOME $54 MORE biweekly now AND THEY WONDER WHY I DON'T GET A DAMN?!
@@opinionmaximus Exactly where's the initiative to work & do a better job ? It's harder yet when people staying home drawing unemployment are making more than you.
@Josef K Really do you shop ? Prices have almost doubled on most things. And when does EVERYONE in society make more ? And you call my ideas stupid. No dumber than your comment. And the failing policies they enact these days & in the past.
Hello Professor Reich and friends we can do this ! Stay hopeful 🍀
Gop...it never works but..we'll keep trying it.
Oh it works. For them.
@@mr.nobody9697 It works for their ultra rich donors.
@@Zach-ju5vi I work for a non profit. Nice try though Zach.
@Solstice of Snow Ha!! Reality is in the way brainiac. Even many in the upper class are seeing their six-figure incomes slip through their fingers. The Nielsen study found that one in four families making $150,000 a year or more are living paycheck-to-paycheck, while one in three earning between $50,000 and $100,000 also depend on their next check to keep their heads above water.
@Solstice of Snow 🤣 source?
One other thing to mention about pollution caused by deregulation are the external costs that are put onto individuals for mitigation of private property. Also the fact that it is far more expensive to mitigate damage of business practices that pollute air and soil than to prevent them in the first place. Love your content and I'm glad you're here!
Yes!
But as the businesses themselves don’t do, or pay for, the cleanups, that still works for them.
@@hypernorm4802 Al Gore tried to make them pay. It was called Superfund, and for a while it worked. But then came Dubya, who rolled back the requirement that corporations pay for the messes they make. Now the Fund is at best a bygone dream, and at worst a joke.
So true, someone who throws the plastic of a product he just bought on the ground gets picked up by the goverment who is funded by taxes. The corporation saves money by not having to deal with the pollution of their product.
Trickle down economics has never worked when it comes to large corporations. The money ALWAYS goes towards the top of the pyramid, CEOs just get paid fatter more obscene bonuses for no improvement in work on their part. In fact in most of the companies receiving extra money from tax cuts or government "subsidies" or bailouts the money goes straight to the top, which is really a parasitic part of the company sucking huge amounts of money for personal gain without any economic output (most economic output comes from lower and middle tier staff, production in china and mechanisation/robotics).
But lets not pretend like this is a Republican party issue, the Democrats were in power for many years since 1979 and they did nothing either to help the situation (numbers in this very video prove this) . They are just as much in the pocket of the ultra wealthy and this problem isnt going to go away by just voting for them. In fact what has Biden done so far to undo anything ? What did Obama do ? And do NOT tell me about random bills that they never passed or ones that did and had Zero effect on the stats. Many of these bills are simply crowd pleasers and are drafted in ways to make sure it doesnt actually hurt the rich who are paying millions towards the party as lobbying. Why do you think Bernie Sanders was not given a chance when his ideas would have been far better for the middle/lower class than anything Biden ever said ? Because the ultra rich backers of the Democratic party didnt want him since it would mean potential distribution of wealth from top to bottom. Biden was chosen because he better aligned with the agenda of the super rich.
The only people that can make difference is the actually people in the lower and middle classes and the return of Unions that have actual power like in the 50s-60s. Both the republicans and democrats are just shills for the Ultra rich who many of them are part of that group anyway.
I enjoyed & agreed with most of your comment. Except for Bernie, he was a sell out. And I don't see him as very effective. Not much he's created or done in life but suck off the taxpayer. Tulsi Gabbard would have been the logical choice for a candidate IMO. I would not have voted for her. But she was the most logical choice at the time. I don't agree with her stance on 2A for one. I believe we need a fairer & simpler tax system. Which Trump kind of offered on his first run for office. But was quick to drop & forget. This I believe would have a bigger impact on peoples wealth & livelihoods. No tax deductions, no returns just pay a simple percentage on what you earned. The more you make the bigger the percentage.
@@m1a1abrams93 I never said Bernie was the best presidential candiate ever, just that he was better than Biden. Biden is just a puppet and he does not appear to have adequate mental sharpness most likely due to his age. Trump made fun of Biden for being a bit "slow" and honestly Biden does seem like he is well past his sell by date.
@nboy7, come to think of it Trickle Down is a pyramid scheme! But instead of having anything trickling down the Republicans skip the pyramid part by directly giving all the money to the rich where it just stay with the rich!
@@grandwonder5858 Funny I lived in the trickle down period (Reagan). Jobs were plentiful. And hard work paid off. Now your lucky to survive with 3 jobs. Yeah democrats love taking from the working to give to the lazy. Do you think they take it from the rich ? They are the rich ! I don't want anything but opportunity to work & keep more of what I EARNED. Not financing BS social programs so irresponsible people don't need to work.
I feel like you've made this video before ... multiple times. The things you've said are so obvious that I, a highschooler, understood them. You'd think people would learn.
These are things about which EVERYBODY should be informed! Thank you!
I have learned to refer to "Trickle Down Economics" as "Trickle On Economics". Makes a lot more sense.
As trumpler said to his friends after tax cuts, "I just made you a lot richer."
@Solstice of Snow exactly who you buy from mostly middle class, you lefty a idiots it Government taxing you to povety it much worse in Australia taxes 125 of them
It never works. Rich stay rich and don't want nothing to stand in way
@bruce basile Both the accounts are troll accounts. Snow and Zach.
@Solstice of Snow in no sense of the word is the U.S. a free market. You’re drinking the Kool Aid if you think the laws aren’t written to protect corporations
Money has gravity. If we don't do something to counteract it, it will all clump together and turn into a black hole. Hence the adage, "you have to spend money to make money." The more you have, the more you can make. The less you have, the less you can make.
To turn $100 into $110 is work. To turn $100 million into $110 million is inevitable
@@Zach-ju5vi I put several thousand into various green shares, one of which went up by 34% if I had put 100 million in... With only the bank cost.. that's a lot of extra millions in one year.
@@Zach-ju5vi So?
The problem with trickle down is that when the rich see their cup is nearly full and about to overflow, they simply buy a bigger cup.
I make $11,440 a year EBT snaps food stamps gave me $40 a month in EBT saying I make too much money.now republicans 2020 stimulus package gave $40 billion in grants to airlines and cruise ships they don't have to pay back
It's like if you pour water into a perfect sponge, then wonder why the ground below the sponge is dry.
When taxes are higher for corporations they actually have more of an incentive to reinvest in their business and hire employees since those things drive down their taxable profits (thereby saving on their tax bill) in the short term but will create more long term wealth in the long term. They are taxed upon profits after paying for business expenses. When their tax rates go down they have more of an incentive to cut costs and layoff to pull more profits out of their businesses. Thoughts on this idea?
The rich and powerful get like 99% of all the 💰💰💰 and the common people can just scrape by all their lives before dying.
Big Corp no longer hand out raises or rarely do. Instead, they tell their employees. "Continue to work hard and become even more productive. You'll get to keep your job."
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*Professor Reich, I love you & your team's work. Thank you for this excellent video!*
I find it a little hard to believe this is still a thing.
I know, right?
Yeah very true.
@Solstice of Snow That's sound libertarian logic right there. "well, if you're starving in America, at least you can do it with an Iphone 10 strapped to your belt, which means you're dying better than the even poorer folks in Ethiopia." No, you're wrong. About everything. Robert Reich has a much better understanding than your "privatize roads, because the free market will figure out the most efficient solution". Yeah, that worked really well with healthcare... All libertarians are morons. Keep up the image, friend.
@Solstice of Snow Lol, prices were on the rise for healthcare before the ACA. That's the entire reason they passed it. If your had a bit more brain, you would have realized that angle is a non-starter. It's simple documented statistics. You're keeping up the image though, just like I instructed. Level with me, you have to be a plant, right? I mean, you're just trolling to make libertarians look bad, right?
My Reich sense was tingling.
I feel it, too!!!! 😁😏
Thank you for making this video, now saved in my "Learn and evolve" playlist👏🏽👍🏼I have been saying this for years, but you explain it so much better than me😉
Like a horrible pathogen, the idea of "trickle down" should be studied as a spectacularly plausible lie with incredible durability. But not to be actually used in public.
I’ve always said that trickle down economics is equivalent to a teacher getting a tutor for her straight A students and saying it will rub off on the kids who are struggling.
That’s an irrational comparison.
@@serg8406 It's essentially the only comparison to make.
Do you give tohe top student all the help while ignoring the struggling person who is skipping school to work a job so they and their siblings can eat today? Which one do you as a teacher/tutor acknowledge and give effort to?
1. Change the tax law so that unearned income, capital gains and qualified dividends, are taxed at a higher rate than earned income, wages, at every income level. 2. Create a fair method for taxing unrealized gains. 3. Eliminate the step up cost basis for inherited assets.
Fantastic video as always. Would love to read those studies in depth if you have them handy
You made a subscriber out of me, straight to the point, informative and with plenty of evidence
Money is one of those things that defie gravity,it flows up. Redistribution, unfortunately, is the only way to keep a consumer driven economy chugging along.
After Ronald Reagan this is what Americans are left with.
@@Zach-ju5vi your saying 20 years of economic prosperity that 10% of Americans have experienced while the rest of Americans have gone backwards economically. Worked longer hours taken fewer vacations become 2 wage earners households to stay afloat and with a loss of healthcare benefits? That’s Reagan trickle down economic policy 90% of American families received. Your saying the past 20 years of economic growth that has made this country the wealthiest in its history. And can’t fix it’s damn potholes provide decent public education or a healthcare system worthy of third world countries. Greedy capitalism and Washington political hucksters selling off the assets of American life to highest foreign country to earn quick easy profits at the expense of American industry and the American worker.
@@Zach-ju5vi No Zach, I'm saying your endorsement of Reagan's 1980's tinkle down economic voodoo policy grossly benefits less than ten percent of today's working Americans. Deregulation that wiped out American industries. Wall Street is mere speculation that is a house of cards similar to the 1920`s. Your living in a fantasy world which you want to call the American dream. Poor public education and unaffordable higher education which will be the undoing of future generations. Poor Robert had to follow 8 years of that type of crap.
Love that you’ve a channel, Bob! Dunno why I’m just finding out. Why didn’t you (or did you?) mention it, when you were on Majority Report, a few weeks ago?
That was my favorite episode, since before Michael passed... It was awesome, and it reminded me exactly of my own ontology and my lecture and grad seminar pedagogy. _If I’m wrong, and an individual can’t make a difference,_ well, then, I’ll just have to be satisfied with the extra fun I had, in life, as a function of trying... Cheers! 🍻
Brilliant !!!! Economics can be so confusing and complex for many of us - especially these days. Thanks for putting this video out there.
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Thanks professor Reich. It's true. I had to take on a part-time seasonal job again to make ends meet. It pays the same wage as when I worked it back in 1993!! What the hell?
_”But Robert, I employ so many peasants to clean my house and tend my landscape and wash my cars. Certainly that’s a better use of resources than taxing me to build schools and roads.”_
This is the best video I have seen that explains trickle down economics. Wish you were my economics professor when I was in college. You make a better professor than the one I had at that for-profit institution that is now defunct.
Robert Reich explains it well. Keep up the good work.
Thank you. Love the Titanic magician style, perfect.
I call it Golden Shower Economics.
I love your videos, it seems like forever since your last one.
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Love your videos. Looking forward to watching your take on US inflation.
Before deregulation people had more choices of Airlines and Banks.
And the phone service was better.
But Mr Reich, the stock market absolutely took off after corporate taxes were cut, and if Trump taught us anything it's that the stock market is the only indicator of the economy that matters.
The above is sarcasm.
You have to excuse Mr Reich...he has a habit of only telling you things that support his counterfeit reality. For example he supports Critical Race Theory...but leaves out the facts that the Democrats owned virtually all of the 4 million slaves, they passed all the segregation laws , signed them off and enforced them, they started the KKK , and after Republicans stopped it, progressive president Woodrow Wilson revived it and it spread from southern states to many states. Mr. Reich and Joe Biden love CRT, because it blames all of AMERICA for crimes that the Democrats committed. Reich leaves out the facts about Trump's tax cuts, where the bottom 10% of workers more than doubled their rise in wages compared to the top 10%, and the median income earners increased their wealth by almost 50% . The average household in 2019 increased their income by $4,400 ...more than all the previous years since 2000 COMBINED.
@@markanthony3275 None of that is relevant to anything.
Robert, seeing that you used Reagan in your animation, I am curious about your thought on Reagan presidency. Do you have a video about him or would you make one?
President: I will cut your taxes, so that you can save more money and hire more workers and pay more.
Rich guy: I don't want to hire more workers or pay more.
It didn't work when Regan tried it.
Yes trickle down to the rich's pockets.
They used to say that ALL the boats will rise as the economy rises; BUT the first question I always asked was: "What if my boat has a hole in it now!?" This is what happened to most in 2008.
Reduce your microphone input to minimize distortion due to clipping, then apply some gentle compression to reduce the volume dynamics and your audio will improve greatly
Never been this early!
@SageTDS : Early for what ? A post ?!?! 😂😂😂 And I thought I had issues...
That's nice but what did you think of what he talked about in the video ?
Thanks for wisdom!
We (Liberal/Conservative) should be on the same page when it comes to monetary inequality. We all should be telling Congress to tax the rich more, stop the tax breaks/loopholes. But the GOP who don't want to tax the rich have their supporters who believe every word they say. I would wager that the far right who hate illegals, who blame every one else for the misfortunes don't seem to blame the rich for getting richer.
Hi Robert thanks for the video!
Can you also address the idea that high tax rates makes us less competitive and businesses would leave? I've heard that from the gop a lot.
They have lower tax rates now and they are still leaving the US and those that had already left didn't come back. It's greed. The companies can get the there products made and the workers for almost nothing. People overseas make pennies for working long hours, no benefits, with high productivity. Globalization continues to put Americans out of work, it was a bad idea.
And because there are fewer jobs in the US, people are desperate and just accept the low pay and with no pay increases. They're just glad to have a job. I also noticed starting salaries are getting lower, salaries in general even though the rich are getting all of these tax breaks. They are not putting the money back into the business and it's workforce, they are buying more high ticket items such as rockets for instance. When in actuality, they could afford to pay each employee at least $50,000 or more a year.
Trickle down economics as a term, started as a criticism and insult to conservatives. Eventually they forgot and started using it themselves.
Robert when you said deregulation.. I was like 'Heh.. Isn't my nation looking for deregulation too? And deregulation has worked here'
Then I saw what America calls deregulation.
In the other nations, deregulation means selling off Public Sector undertakings that were formed during a moment of crisis.
As in for many years, mining of some minerals was a national monopoly (GMDC - manganese, Graphite India etc) when these minerals became valuable the Indian govt sold off the PSU to private players.
And this is what we call deregulation
Depends. There are certain things are better off not being deregulated, such as public transportation, the postal service and water supplies.
Some things should be seen as services the states provides its citizens with and not as undertakings that need to make a profit.
@@darthplagueis13 Yes. The three you mentioned all have a common characteristic - they are not profitable.
So yes, in most nations these are a public undertaking. I think only in the US are they private
I've always said that if governments really want to fight economic downturns then they should adopt trickle-up theory, not trickle-down theory. During Covid, our economy could have tanked extremely badly had it not been for stimulus payments that went directly into the hands of the people which kept demand pretty much in place. Certainly, it was not perfect but it was far more effective than what trickle-down ever could have done. I'm surprised that no one seems to be taking note of this.
If the poor get money, they spend it - locally. When the rich get money, they "invest" it - off-shore ... or who knows what the hell they do with it?
And thus the two plus years of screaming inflation.
Priming the pump is a lazy and pathetic way to help the economy. I’d prefer a submersible pump that doesn’t need priming. Let the market be.
Companies must include Profit Sharing for all workers. As corporations take in more profits, employees do too. This motivates the workers. This fights inflation because workers can pay higher prices. Profit sharing creates teamwork and the corporations produce better products and services. !!!
If you want to grow a strong tree, feed the roots, not the leaves.
Thank you Mr. Reich for making middle class like me getting smarter and smarter in our economy. Keep doing the good job, sir !.
Your videos are amazing . Thank you.
The only way for trickle down economics to work is to make tax cuts conditional.
Don't give corporations a blank check and expect them to act in the nation's interest, you have to be explicit about it. Cut taxes if they double the raise for this year, or when they hire and amount equal to a certain percentage of the current work force in the company. Cut taxes when they contribute to the local community by fixing infrastructure for example.
And certainly, there should be absolutely no deregulation.
Unpopular opinion: TDE does infact work, just not how they say it does. The money trickles down into the pocket books of the politicians who are more than happy to get the scraps of the mega rich, like dogs at the dinner table.
I wish Mr. Reich would do a comprehensive overview of the repercussion and ramifications of the Powell Memorandum on today's political and economic environment. PLEASE.
Out of control health care costs is an understatement. My dad was in the hospital for 2 days. Cost: $44,000. Fortunately his VA health insurance paid for most. But then, who is paying the bulk of that $44,000? Us! Taxpayers. The only way we're going to stop this insane financial inequality is to unite. But then "they" have an answer for that ... keep the lowly average American divided so they'll never unite.
I for my part believe in trickle-down-ecoLOGY.
Companies have to do more efforts in that respect before I even have to start any.
Ah, "Tinkle-Drown Economics". Don't piss on my back and tell me it's raining!
Sounds great and makes sense if somebody explains it to you, but it doesn’t work in practice.
The best illustration of trickle down economics I ever saw was by the cartoonist Steve Bell. The person pouring he champagne filled the top glass to the brim and then necked the rest directly from the bottle…
"So don't fall for trickle-down nonsense." - Perfect!
@Solstice of Snow Trickle-down economics is a failed economic theory. One can know it is if he or she can understand simple, clear, and direct English.
Thanks Robert. I'm writing an essay on the failure of american conservatism, and this is one of the important points.
The ways tax cuts for the wealthy and corporate retained earnings are spent:
1. Invest in corporate growth which leads to more hiring.
2. Purchase competition, leads to consolidation and leads to layoffs
3. Purchased automation which leads to layoffs
4. Share buybacks that only help shareholders
5. Overseas investments or asset purchases or luxury spending
6. Real estate investing
7. Buying shares of other companies
8. Political donations and lobby
9. Charity donation
10. General cash and wealth hoarding
So a couple of these could be seen as positive but I have my doubts that a significant percentage goes the positive directions.
He looks like santa-claus when off-duty.
Trickle-Down Economics never trickled-down to me.
Here's a more fundamental question to ask: Is it even possible for trickle down economics to work? Is there any mechanism where it could be made to work? Beyond corporations somehow passing tax savings onto their workers in the form of pay raises I really don't see a way for it to work. Obviously they don't do that and never will but even if they did, would it work or would some other unintended consequence rise up and negate any gains for the working class?
I knew this from the 80s watching the Reagan tax cuts, it is an old saying from the military. Don't piss down my back and tell me it's raining! That's exactly what trickle down economics is, pissing down someone's back and expecting them to smile about it.
Give an example of a company which does not exploit it's workers so that it can be a role model for others
3:46 Anyone who suggests trickle-down &/or deregulatory policies should be immediately and literally branded on their forehead with the slogan: I am a sadistic moron who only wants you to suffer!
It's trickling down my leg as we speak.🤣
One could also ask: "What's better for society and economy: A thousand millionaires or one billionaire?" - I guess the answer to this says it all !
You should remind people that the economy is 100% driven by consumerism. Jobs are ONLY made when there's enough demand for a product to expand production of that product- it would be insane to make more of something just because you have more money to make it if there was not demand for that product. A good example of that are car companies- who are constantly changing what they make based on what people buy- as long as they make money. They are making fewer and fewer low profit/low cost small cars because they are not profitable and fewer are buying, and more of CUV's and SUVs since they make more money have higher demand.
Supply and demand drive the economy and jobs. Not tax cuts.
And demand for products is 100% about people getting money to spend- not concentrating it all at one sector of the economy, all of it.
I just realized, two days after the usual tax day deadline, I still have to do my taxes. It might have to do with the knowledge that the presumed amount of my refund is going to be much less than usual. Even with a current $15 per hour wage I've had since September, my wages didn't increase a whole lot.
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