Trickle Down, Not Hemorrhage Out

During the 1980 campaign for the Republican Parties nomination for President some words about economics flew back and forth between Ronald Reagan and George H.W. Bush. Ronald Reagan brought out the Trickle Down theory of economics what George H.W. Bush called Voo Doo Economics. Hard to believe the two ended up as running mates.

The Theory of Trickle Down Economics is basically this: To fix the ailing economy and to stimulate growth the Government would institute programs such that the Government would build infrastructure like roads, bridges, and that type stuff, plus purchase ships, planes, and other equipment for the military and other Government agencies. All kinds of programs were designed to pour money into the economy using U.S. companies. The idea that the spending would put money into the companies who in turn would pay their U.S. workers then those workers would spend the money spreading it around buying goods and services increasing demand thereby increasing manufacturing in other sectors which leads to more jobs. A great theory, heck it worked for the U.S. to help end the Great Depression, of course back then it was known as the New Deal. Reagan may have been a Republican but he had a Roosevelt Democrat leaning.

If you look at things it is logical and works. What makes the theory not work is when the vessel (our economy) has holes or blockages at the top levels and instead of the money making down to the workers it goes somewhere else or it doesn't make it down at al. What constitutes a hole or blockage?

A hole is where the government provides money or tax break to a corporation and instead of using U.S. workers they outsource to foreign countries for cheaper labor then pocket the difference. That is a hole and the money leaks out of our economy. Heck, now so many companies are doing this it has become a hemorrhage. Our workers have lost jobs, savings, and homes because of this while the companies have profited, huge profits.

A blockage is when the Government provides money or tax break to a company to help but instead of putting the money to active use they use the funds to fudge their books to make it look like they have more assets on hand than they actually do. They do this to manipulate their stock to encourage people to invest in the company. Talk about fraud. Some company officials use the money to pay themselves astronomical bonuses. Wow, what a rip.

Now if we look at our economy as a living organism and money flow as the circulatory system, we can see it is no good. Our work force is what sustains us, it is the living tissue and if it lacks nutrients or oxygen it dies. When someone hemorrhages unless it is stopped that person dies. When there is a blockage of a blood vessel it could lead to heart attack or stroke, both are deadly.

Not good!

During the George W. Bush Administration we suffered from hemorrhages and blockages. Jobs went overseas, government bailout money was to manipulated stocks and pay bonuses, and our economy went to heck. They funny thing, actually sad thing, is corporate heads made ridiculous amounts of money while the poor got poorer. The gap between the wealthy is larger than the Grand Canyon.

Now we need to plug the hole and remove the blockages. If we do this and instigate President Obama's plan set forth in his State of the Union Address we will prosper, every one of us.

Voting, the great cascade effect.

I'll keep this short. Remember that it is an election year for many offices in the United States. Keep in mind when you vote you not only determine the candidate you also help decide future laws, judges, taxes, social programs, regulations for business, and spending for things responsible for your freedoms. Consider all of theses and determine the best balance before you cast your vote. Not every candidate nor political party has all the answers. One thing I do is think about people when I vote, I suggest you all do the same.

An Open Letter to the Occupy Movement (a little late maybe)

I was reflecting on last year, thinking about the different events that made the news, and one of those that stood out was the Occupy Movement. Yes, there were other events that were more news worthy but this is one that is not a natural disaster, one I feel safe to write about.

I know that many out there are upset with Wall Street, with big business, and a government that lets the little guy get run over. Heck, I agree. We are where we are because businesses run by greedy people fleeced us, one way or the other. Many financial institutions failed, may other businesses failed, many people lost their jobs, and worst of all, many people lost their homes. It would be unwise to lump this on business, the government, or the individual. Many are at fault, but the people who are mainly to blame are those who manipulated laws and regulations to allow for the most profit, no matter who it would hurt.

We know this, or we should know this. We need to change these rules. We need to bring back regulations that will protect or economy, our people. How do we do this? One thing we have to do is take this election and make it count. We need to elect those who will put the main factor of our economy first, the people. (I got news for big business. If it were not for the people you would have no business at all) Let the politicians know that the people need the jobs, the people need the money, people need their homes, the people need protection of their life savings, their retirement, and their futures.

Another thing we can do. We can put pressure on the Federal Government to change. State and local government both figure into business, but not as much as the Federal government. Write your congressmen, the President, hold marches and protests. Don't put extra stress the cities and local people, it is the little guy who gets it in the end. Yes, pressure Wall Street, maybe they will change. I doubt it. You have to understand that the leaders of these corporations saw things coming and still did not change; they took the money and ran. You can't make people change unless they have incentive and want to change. Do CEO's have the want to change? Not when they are greedy. Incentive? Less money is not a good incentive.

So Occupy Movement, do something this year; occupy the voting booths. Vote for the candidates who care about the people. Rally for the little guy. Rally against big business.