Proof That Trickle-Down Never Even Dribbled Down
Proof That Trickle-Down Never Even Dribbled Down by David Haggith for The Great Recession
Want to see a crystal-clear picture of who has been helped the most by decades of trickle-down economics, who has gone nowhere and who has actually gone slightly downhill? Well, here you go:
Everyone has gone essentially nowhere, except the top 10%.
Clear proof that throughout the years of trickle-down economics (primarily created by huge reductions in capital-gains taxes — capital gains being where the rich make their money) nothing has trickled down. Everyone has gone nowhere or even down, except the rich.
Interestingly, no one went anywhere in accumulated wealth as a result of the Trump Tax Cuts, which became effective at the start of 2018, not even the rich. Yet, the nation did go deeper in debt due to the combination of tax cuts and increased government spending. So, how is anyone better off?
This graph also demonstrates the fact that years of Fed money printing after the Great Recession also helped no one … except the very rich, who quickly scrambled back out of the hole. That, of course, was because all Fed firepower was poured directly into bonds and then stocks — capital assets. So, the explosive fuel went into capital assets at the same time the taxes on their gains remained down.
Over an even longer timespan, here is what happened to wage earners, (as opposed to the 10% above who make their money from investments):
In nominal dollars, you would think the average wage has been steadily rising quite well (yellow line); but, adjusted for inflation, wage earners are lower than they were at their last peak in 1974. As a person who has grown older during that time, you may not have felt the full stagnation because, most likely, you migrated up in rank at your job or moved on to better positions or companies as your skills and experience rose. The average wage, however, held flat, adjusted for inflation. What that means, if you are a wage-earner and an average guy or gal for your age, is that you are not doing any better than someone in 1974 who was at the same point in his or her life and career as you are now.
That is what helps keep suppress revolt. As individuals, everyone who has lived a little thinks they’re a little better off because their social station climbs with time as it should with decades of work because their individual skills and value grow; but they’re not doing any better off near the end of their lives in terms of their wages than what people in 1974 were doing near the ends of their lives. It’s a mirage that moves forward with you as you move forward in age. In other words, the average sixty-year-old today is making the same as the average sixty-year-old in the 1970s, while the average twenty-year-old today is making the same as the average twenty-year-old in the seventies.