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Old 02-04-2019, 05:02 PM
 
Location: Trieste
905 posts, read 784,829 times
Reputation: 688

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Quote:
Originally Posted by CaliRestoration View Post
Can you show a real world example of "trickle up" working?
Companies should gain more profit from more sales, not from tax cuts.
And how they get more sales?if the State help those who don't have enough purchasing power it will create more consumers for the companies...
in this way we will have killed two birds with one stone...

that's, more or less, how it worked in the 50s 60s and 70s (untile 1973)
when State intervention, progressive fiscal policies and redistribution ones were at their best the economy used to grow faster, the debt (both private and public) was less and innovation rate higher.

I think economy is always demand driven, you can cut whatever tax you want from the upper class and companies but if demand are low , because there are too many poors for instance, economy will still struggle.
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Old 02-04-2019, 05:10 PM
 
4,701 posts, read 2,425,883 times
Reputation: 4017
Quote:
Originally Posted by Italian (x)lurker View Post

that's, more or less, how it worked in the 50s 60s and 70s (untile 1973)
when State intervention, progressive fiscal policies and redistribution ones were at their best the economy used to grow faster, the debt (both private and public) was less and innovation rate higher.
Yes, that's how it worked until global competitive markets began to take a toll on domestic manufacturers and markets. Asia and Europe weren't burning husk from the calamity of World War II anymore, and were true industrial powers by the mid-70s.

It's easy to enjoy high taxed prosperity when you're a global hegemonic power. That's not the case anymore and hasn't been for decades.
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Old 02-05-2019, 04:34 PM
 
1,843 posts, read 763,110 times
Reputation: 699
Rational Expectations post is a good one but kind of grazes over some issues.

He states the buy back doesn't increase wealth but then correctly states it does tend to boost stock value which does mean it creates wealth. It also doesn't really do much for innovation. If someone thought their money was put to better use in another company why not put it there on your own? Sure you have introduced potential new capital but not really. In the real world it's pretty easy to find a buyer for most stocks at a market price. All you have done is forced a move of capital that could have happened anyway. IN the end it's away to make shareholders happy consolidate control of a company nothing more.
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Old 02-05-2019, 04:39 PM
 
376 posts, read 87,796 times
Reputation: 533
The trickle down economics scheme was a huge joke on the public.
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Old 02-06-2019, 09:18 AM
 
4,701 posts, read 2,425,883 times
Reputation: 4017
Quote:
Originally Posted by Italian (x)lurker View Post
Companies should gain more profit from more sales, not from tax cuts.
And how they get more sales?if the State help those who don't have enough purchasing power it will create more consumers for the companies...
in this way we will have killed two birds with one stone...

that's, more or less, how it worked in the 50s 60s and 70s (untile 1973)
when State intervention, progressive fiscal policies and redistribution ones were at their best the economy used to grow faster, the debt (both private and public) was less and innovation rate higher.

I think economy is always demand driven, you can cut whatever tax you want from the upper class and companies but if demand are low , because there are too many poors for instance, economy will still struggle.
Yes that is the common demand side theory. The only problem you and other demand side theorist can’t seem to explain is how to make that model sustainable without basically giving people government money the rest of their lives.
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Old 02-06-2019, 09:47 AM
 
464 posts, read 83,778 times
Reputation: 750
Quote:
Originally Posted by East of the River View Post
Rational Expectations post is a good one but kind of grazes over some issues.

He states the buy back doesn't increase wealth
Thanks for your comments. If you go back to my post you'll see I said (emphasis added):

Quote:
Buybacks do not automatically make shareholders wealthier.
And then I give a quantitative example to prove my point.

The false trope of the progressive left is that stock buy-backs are a give-away to the people at the top and should instead be used for “worker training, equipment, research, new hires, or higher salaries.”

Notice the operative word "should" in the above sentence. That is what's really going on: Native American US Senator Elizabeth Warren (D - MA) along with the peanut gallery of Senators Chuck Schumer, Bernie Sanders, and Kamala Harris want to substitute their own preferences for those of us who actually, you know, contribute to GDP. Never before have the words been more true: "Progressives are people who feel a great debt to their fellow man, which debt they will gladly repay with your money."

Quote:
Originally Posted by East of the River View Post
It also doesn't really do much for innovation. If someone thought their money was put to better use in another company why not put it there on your own?
The objective is to get cash out of those companies who cannot make great use of it, which allows that cash to be redeployed into better use. That better use supports innovation.

Quote:
Originally Posted by East of the River View Post
IN the end it's away to make shareholders happy consolidate control of a company nothing more.
What's wrong with making shareholders happy?

Regarding your assertion that share buybacks do nothing more, well, that isn't supported by either economic logic or facts.
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Old 02-11-2019, 10:38 AM
 
4,701 posts, read 2,425,883 times
Reputation: 4017
Well, guess this debate is done.
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Old 02-11-2019, 12:14 PM
 
Location: Ohio
4,532 posts, read 1,625,613 times
Reputation: 3595
" Is It Time to Admit that "Trickle Down" Supply Side Economics Don't Work?"

The answer to your question is that it depends on who you ask. It's working very, very well for the upper 1%, the billionaire class. it has never worked for the middle class and below if by "working well", you mean the chances for getting more prosperous.

System is now prepped and poised for great wealth and power to create enormous wealth and power - always at the expense of the working class. So depending on your point of view, and how lucky you are - it is working well. Using the doublespeak of the software world, it is working "as designed".
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Old 02-11-2019, 02:16 PM
 
4,701 posts, read 2,425,883 times
Reputation: 4017
Quote:
Originally Posted by GearHeadDave View Post
it has never worked for the middle class and below if by "working well", you mean the chances for getting more prosperous.








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Old 02-11-2019, 08:09 PM
 
Location: USA
147 posts, read 75,721 times
Reputation: 314
You forgot to compare households who:

- have a watch
- have running water
- have electricity
- number of income earners
- swimming pools
- inlaw houses
- maids quarters
etc....


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