The thirty year old Conservative plan for the economy is known by many names; Supply Side, Reaganomics, but my favorite name for it is Trickle-Down economics. In case you don’t follow economic theories, Trickle-Down is the practice of giving advantage to the supply side of our economics system, the corporations, wealthy, and small businesses who create jobs, through tax breaks and incentives. The idea is that wealthy people flush with cash save that cash, and those savings are invested, through some means, back into the economy, which then through various ways, trickles down even to the poorest of Americans, either through innovations and efficiencies that make consumer goods less expensive to own, or through job creation due to increased demand.
Historically, this has been accomplished through tax breaks, especially for corporate America. In fact, about the only solution available to Supply-Siders is reducing taxes.
Thankfully, that’s as complicated as Republicans have made it, which makes my job much simpler. The idea of cutting taxes for corporate America and small businesses is that they will then use that money to create jobs in their own businesses. Only we’ve been using Bush’ Trickle-Down tax cuts for nine years, and we’re bleeding jobs. The best that can be said about Bush’ job creation record was that it was a positive record during his two terms. He averaged 49,000 jobs created per month. Economists say we need at least 150,000 to keep up with population growth. So Bush only fell about 101,000 jobs short per month with his Trickle-Down plan.
So much for tax cuts creating jobs.