Monday, April 02, 2012

Trickle Down Dries Up

Trickle down economics, I think that is just another way of saying "We're already quite rich and we'd like to keep it."

If you paid me £210,000 a year as opposed to what I get now then some of that money would trickle down and out into the general economy.  I would dine out more, I would go on more holidays and visit more galleries, museums and other places of interest. I might buy a newer car and other toys, a tablet computer, a new camera, whatever the new 'shiny thing make people happy' consumer item comes on the market. So yes indeed, some other people would see the benefit of my enormous wage.

If however you paid me £30,000 and paid another 6 people £30,000 each, then another 6 people and their families would be doing quite well.  I would think that a higher percentage of that £210,000 would be put into the general economy as seven people spending money are likely to consume more than one wealthy person.

Trickle down economics is therefore largely rubbish. What people need is jobs and a regular wage.

1 comment:

  1. Anonymous3:12 pm

    good point - well put... !

    Paul T-G-M