Trickle Down Myth Just Won’t Die

Trickle Down Myth

Read this:  Since the early 1970’s the 99% has increasingly been victims of the myth of “Trickle Down” economics.  We don’t seem to hear the term as often today, but its’ policies continue to infect our political system, very much alive and well.  The article below from The Daily KOS, by Laura Clawson, illustrates one of the key pieces that spread the effects of this myth – “reducing corporate taxes produces jobs”.  This “frequently cited rationale for corporate tax breaks (suggests) that companies will use the extra money to create jobs. They’d love to create jobs, we’re told, if only they could afford to do so, and one more tax break will make that possible.”  The reality, after recitation of the myth puts us to sleep, like any good fairy tale should, “we see that many companies are sitting on giant piles of cash and cutting jobs anyway.”  But where are the numbers to support this you ask.  According to Clawson’s article, “The AFL-CIO’s Paywatch includes some data on major corporate cash hoarders—five companies that added $57.8 billion to their cash stockpiles between 2007 and 2011 while cutting more than 64,000 jobs worldwide. (We can’t know how many of those jobs were in the United States, because companies aren’t required to tell us that.)”  If we can’t kill the “Trickle Down” myth, what can we do?  Perhaps a shift in policies would help – you think?  “We know that helping these corporations accumulate more money doesn’t create jobs or help the working economy. And if lower corporate taxes created jobs, the United States would be at full employment and looking into making second jobs mandatory, given our effective corporate tax rate. If corporations are going to act only in their own shortest-term self-interest, our policies and politics should at least reflect that, and make it mandatory for them to pay something approaching their share.”

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