Monday, October 3, 2016

Hillary's Stupidity on Trickle Down Economics

During the debate, Hillary Clinton criticized Donald Trump's economic plan as "Trumped-up, trickle-down" economics.  Then, she went on to say that "trickle-down never worked" and “slashing taxes on the wealthy hasn’t worked. And a lot of really smart, wealthy people know that.”

First of all, let me say, everything she said above is false.  While not an economist by title, I have studied economics and economic theory in college and have continued to study it ever since.   I can assure you that there is no such thing as "trickle-down" economics.  It was a purely political pejorative used by the Democrats to criticize any economic plan that would cut any taxes on the rich or corporations.  It was first used during the Great Recession by humorist Will Rogers whom, I am quite sure, was not an economist.

Let me also criticize Hillary's statement that "slashing taxes on the wealthy hasn’t worked."  Obviously, she has no idea of what she's talking about.  The Bush tax cuts -- including tax cuts on the rich -- helped right the economy following the 9/11-caused recession.  But, more importantly, she obviously has no understanding of the history of her own party when she makes a statement like that.  In 1963, Democratic President John F. Kennedy proposed tax cuts for both the top wage earners and corporations in order to stimulate the economy.  While he was assassinated before he could get passage of his proposal, then-President Lyndon Johnson was successful in getting the Revenue Act of 1964 passed into law.  As a result, the top tax bracket was lowered from a rate of 91% to 70%.  The corporate rate was lowered from 52% to 48%.  In, addition, all other tax rates were lowered by 20%.

The results were remarkable.  By 1966, the economy was growing at the unusually high rate of 6.6% and unemployment fell to an almost historical low of  3.8%. In addition, tax revenues increased by 68% and poverty was cut by a third.

So, to Hillary: Trickle-down works.  Get your facts straight before you start lecturing, or perhaps lying to us about the history of economics.


Wall Street Journal: Donald Trump vs. Hillary Clinton on Tax Cuts for the Rich:

Trickle-Down Economics:

Trickle-Down Theory:

Revenue Act (aka Tax Reduction Act) of 1964:

What J.F.K. Knew About Economics And What Most Democrats Today Don't:

NPR: JFK's Lasting Economic Legacy: Lower Tax Rates:

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