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Aella
@Aella_Girl
"trickle down theory" seems obviously correct to me. Like, if a person has lots of money, it's stupid to sit on it - they invest it, found businesses, hire people, buy things - all of which are putting money back into lower tiers of the economy to me. Am I missing something big?
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Jorn
@woodfeeds
Replying to
@Aella_Girl
Most of the money saved in big business tax cuts goes towards stock buybacks which raises the price of the stock but does little else for the economy. the money does not “trickle down” to the lower ranks of the company it stays at the top.
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Aella
@Aella_Girl
Replying to
@iAmAdamReid
I own stock. If I get richer from stock going up, I invest more and have more to spend on e.g. a house, which requires paying people to build it. Taxes on income do seem to reduce the usefulness of trickle down tho
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Jorn
@woodfeeds
Replying to
@Aella_Girl
its more good for the shareholders than "the economy" whats good for the economy is the circulation of money. working class people with money to spend.
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Will Rosecrans
@forkazoo
Replying to
@Aella_Girl
Not necessarily. Arguable, even GDP growth is a terrible measure, though it's much more relevant. 1 guy making 2 million dollars and a million folks being out a dollar is GDP growth of a million dollars, which leaves 99.9+% of the people economically worse off.
Gaston Marian
@gaston_marian
Replying to
@Aella_Girl
One issue is that the stock market isnt a good indicator or the economy as a whole. The wealthiest 10% of the population owns >80% of stocks, with nearly half of Americans owning none at all. And when wealthy people get more money they invest it, which doesnt even help businesses
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