Argument: “Trickle Down Doesn’t Work.”

November 4, 2011

Response: Ahh, but it does.

The video explains. Please watch. (Many thanks to web forum user Quantum Windbag for making the connection.)

“Trickle down doesn’t work.”

…or so goes the common incantation that statists recite to dispel free-market demons. It’s blurted in the same way that superstitious people blurt “God bless you,” after someone sneezes nearby. If one is caught in a fit of defending rich people’s wealth, the reflexive reaction that she is likely to receive is the utterance of those magic words, “Trickle down doesn’t work.” Read the rest of this entry »


Links for October 10, 2011: Elizabeth Warren’s Social Contract; The Poor Get Richer; The Poor Get Poorer, others….

October 8, 2011
  1. I like Elizabeth Warren. I think she makes a lot of sense a lot of the time, especially on the issue of spending. I don’t want to see her on any sort of ideological hit list. Still, those who have labored even a moment to process such thoughtless sloganeering must have cocked their heads in bewilderment. What social contract is Elizabeth Warren reading?

    Even assuming that the “social contract” theory is valid, which I do not, her timing is weird. It sure is odd to imply that everybody BUT the factory owner has paid for the roads, etc. Indeed, the factory owner very likely paid more in taxes for them than did most other people (albeit at possibly a lower rate compared to income, a la Warren Buffet). Why not simply acknowledge that the factory owner is entitled to a share of the road and police service commensurate with the taxes he or she has paid? Doesn’t that satisfy the social contract? Since when was “pay it forward to the next kid” a part of the social contract? Even if “pay it forward to next kid” was a part of the social contract, the factory worker does this not only by employing the next kid, but also by mass-producing a useful good and making it available to the next kid at a competitive price. I do not appreciate this misguided portayal of producers as take-take-takers.

    I wish there was some more context to this clip so that I would know exactly what evil she is attempting to remedy with her newly-amended social contract.

    See also Robert Murphy’s response:

    Warren alludes to an “underlying social contract.” Well it’s very convenient for her to discuss this contract, which none of us has ever seen but apparently she can interpret.

  2. Yes, this is the economy as Elizabeth Warren has described it.  Read the rest of this entry »