By Josh Dodd
I know you’re thinking…isn’t this a conservative blog? So why’s this guy bashing trickle-down economics? Just follow me.
Many politicians have tried various methods of trickle-down economics. Some were successful in their efforts, but others have failed us with bad economic policies, some versions of trickle-down being a great failure. You see, politicians giving money to their cronies and convincing the American people it will trickle down to them has never created a strong economy, but has instead created a class of ruling elites that think they know what is better for the American people, instead of allowing them the self-government to make decisions based on their own best interests.
The fact of the matter is, the state does not create wealth, it consumes it. The state does not produce anything the people would freely buy in an open marketplace, such as sanitation, utility services, etc. My very own county is proof that it has been possible, as we have only been on public sanitation for a little more than a decade.
Before public sanitation our garbage routes were contracted out to citizens of our county, who maximized efficiency with their services, despite being taxed forty percent from the start by our county. One former owner said he paid sixty-three percent of his total income in taxes, and he ran part of the routes for forty years! Forty percent of the garbage business was not enough for greedy politicians in this county, though, as over the next few years they assumed responsibility for the sanitation services, bought brand new equipment, grew bureaucracy, and, as a result, rates have risen forty percent to all of the residents of my county.
This is just one example, though, as I am sure there are many more that show how inefficient government is in providing services, but that is not the issue at hand. The fact is that the trickle-down economic policies of tax-and-spend liberals have failed us from the local level to the national level. One need not look any further than Solyndra and the other solar failures of the current administration. President Obama gave over $500,000,000 to his cronies in an effort to try and spur this alternative energy that very few can afford, and hopefully trickle-down to consumers, which failed in the end. This cronyism is what people are sick and tired of. Let the market work! Is it so much to ask?
I will end this post with a couple of excerpts from an essay by K.L. Billingsley from the book, Cliches of Politics. Billingsley states, “In the United States money does not trickle down from the government. It flows upward from the private sector. In a market economy, individuals and corporations earn money by producing goods which uncoerced consumers will purchase. More important, in democratic societies that respect human rights, the government has no prior claim to what people earn by their honest labors. There was, however, a system which maintained such a claim. It went by such names as feudalism, slavery, and totalitarianism.”
He ellaborate this trickle-down theory further, “You the producer will, on your own initiative and with your own capital, work hard to turn a profit. We, the government, will impede you with regulations and confiscate ever-increasing amounts of your income. With what we confiscate, we will first take care of the needs of the state, but hopefully some of that money will trickle down to those we determine to be needy victims.”
It is imperative to note that trickle-down economics, in this sense, is bad economic policy that has a history of doing nothing but rewarding political favorites and costing taxpayers immense amounts of money that could have been better invested by those from which it was confiscated. In short, this model of trickle-down economics is the cause of our economic problems!