Trickle Down Economy

"Trickle Down Economy" - This word is almost always used in a negative fashion. Many on the left refer to capitalism this way.

Apparently, there are 2 types: 1) Trickle Down Economy 2) Spread-the-wealth Around Economy.

More well known, real names, for these two types are: Capitalism and Socialism.

Lately, every professor of economy is writing to news papers declaring that capitalism is dead. And these are the same guys who don't admit that socialism was dead with the end of the evil empire. So, let us examine.

Under capitalism, I work hard and save. And then buy a house with those savings. Remember I did not build the house nor did any community group built it for me. A large number of different hard working individuals built my house. And as part of the process earned a living themselves. And yes, I have a lawn. And I hire a landscaper to do it. He is a small business and he has a small crew who take care of my lawn. And thus each one of them earned a living.

Under socialism, I work hard - but can't save, because I only earn a "living wage" - I will only get enough "bread" for my family, a community multiplex (read: Slum) apartment, use public transport and no lawn. So, the guys that built that multiplex also get the same. And there are no landscapers. So, there is no incentive for me to work hard nor for the guy building the multiplexes. Whether he builds one or many, whether be builds it well or not, he gets the same "remuneration".

I have seen both types first hand, lived in both systems.

To many lefties living in the west, Soviets did not know how to "implement" socialism. If only we allowed these folks, it would "work". Yeah, sure!

To me, the only type of economy there is, is the "Trickle down" type. Because, without the rich guys and their parties, vital segments of the job market would disappear. Without these guys cruising in their yachts, there would not be any boat builders. If it is not for their lavish houses, there would not be any groundskeepers. Because, in any society, different people can do different things better.

For "Joe the plumber" to get ahead in life, he has to have some incentive. God bless this guy and everyone else like him who is creating opportunities for others to get ahead. I am not an "entrepreneur". But I certainly appreciate all they do  for the economy - the trickle down type.

Rising tide lifts all boats. And the inverse is true too. But, in the current economic environment, it is easy to jump on the bandwagon and claim that the "rich" had their unfair advantage. But during the boom time, I don't think I heard much of that. Federal government was raking in lots of tax revenue and everyone was in favor of the party to keep going. And of course, the trickle down economy worked too well, I should say.

As far as I am concerned, there is only one kind of economy and that is always the "Trickle Down Economy". I don't think it is such a bad word to say after all.