2 ms·

Yet they need more tax breaks so the wealth trickles down to the... shareholders? No. We need to invest in infrastructure and research so that companies have pl

Yet they need more tax breaks so the wealth trickles down to the... shareholders? No. We need to invest in infrastructure and research so that companies have places to invest in. Share buybacks are just propping the economy up until assets blow up.

dmix 7y ago
Who exactly is calling for tax breaks for the wealthy? The fact they do it doesn’t mean the people were calling for it. A "Trickle down" tax system isn't in any economics textbook or taught/debated in economics courses.
- taurath 7y ago
  Somehow it seems to have happened in a huge way every time a republican is in office though. It’s not like politicians respond to the people, they respond to their donors.
  - dmix 7y ago
    Even then it's rarely the actual goal of the policy either. It's usually a side effect that gets packed in to wider reductions. "Trickle down" as a concept is a political invention. The disconnect between real-life economics and policy isn't limited to just that either. Just like how all the private equity businesses were the first to be brought in front of congress immediately after the 2008 financial crisis because everyone wanted to blame them (they wanted to blame "neo" Gordon Gekko corporate raiders for all the problems, but quickly discovered all the LBO firms out-performed the market and had invested in companies which would have stagnated or died otherwise). Yet they ended up being the few firms who could had the LBO capital market not existed). In the end much of the capital for the bailouts the Obama administration used came from the same group they wanted to blame. Then a bunch of new rules got put in place which only solidifier the stranglehold the top-5 banks had as the smaller banks could never have survived had they met the capital and oversight requirements.

2 ms·

Yet they need more tax breaks so the wealth trickles down to the... shareholders? No. We need to invest in infrastructure and research so that companies have pl

by taurath 7y ago

dmix 7y ago
Who exactly is calling for tax breaks for the wealthy? The fact they do it doesn’t mean the people were calling for it. A "Trickle down" tax system isn't in any economics textbook or taught/debated in economics courses.
- taurath 7y ago
  Somehow it seems to have happened in a huge way every time a republican is in office though. It’s not like politicians respond to the people, they respond to their donors.
  - dmix 7y ago
    Even then it's rarely the actual goal of the policy either. It's usually a side effect that gets packed in to wider reductions. "Trickle down" as a concept is a political invention. The disconnect between real-life economics and policy isn't limited to just that either. Just like how all the private equity businesses were the first to be brought in front of congress immediately after the 2008 financial crisis because everyone wanted to blame them (they wanted to blame "neo" Gordon Gekko corporate raiders for all the problems, but quickly discovered all the LBO firms out-performed the market and had invested in companies which would have stagnated or died otherwise). Yet they ended up being the few firms who could had the LBO capital market not existed). In the end much of the capital for the bailouts the Obama administration used came from the same group they wanted to blame. Then a bunch of new rules got put in place which only solidifier the stranglehold the top-5 banks had as the smaller banks could never have survived had they met the capital and oversight requirements.