Letter: Reagan’s ‘trickle up’ effect - East Valley Tribune: Letters To The Editor

Letter: Reagan’s ‘trickle up’ effect

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Posted: Thursday, March 21, 2013 12:58 pm | Updated: 7:23 pm, Fri Mar 29, 2013.

After seeing two writers disagree with a recent “Letter” I wrote the first week of March, I figured it was time to remind these forgetful conservatives of the simple principles of “Economics 101”

Reagan’s “trickle down” only trickled up...in a big way, because making rich folks richer does not put much money into the economy. They mostly sit on their excess wealth or stash it overseas to avoid taxes. And they’ve shown they are just as willing to invest in China or India as here in America.

None of those choices creates many jobs here at home! But what worked in the past can work again!

Trickle up economics, as demonstrated successfully between 1945 and 1975 by Presidents from both parties works! The government jump started the economy by creating jobs, and that increases demand, creating even more jobs!

Consumers are the ultimate creators of a robust economy as any economist will tell you! If the ‘90%’ have good incomes, they spend 85-100 percent of it, month after month, and this increases “demand” which in turn creates a need for an increased “supply.”

How do you increase the supply to meet a larger demand? You hire more workers, buy more raw product, build new factories and equipment and hire more trucks and trains to haul the supply to the demand!

Taking money from the pockets of the underpaid working class, as the Ryan “House Budget Plan” has to do to make the numbers add up, is the worst thing Congress could do right now!

The very worst!

Rod Livdahl

Mesa

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