Trickle-down Economics Works
Refuting the Leftist Misnomer

About the Author
Jackson Capper
Jackson Capper 14th February 2018 4 minutes
Economics

Trickle-down economics is a leftist caricature of conservative economics. It is a strawman that attempts to frame the conservative economic model as ill-conceived and shallow. “Trickle-down economics doesn't work” the leftist will declare confidently, qualified by the parroting of panel-guest leftists in various TV debates. The argument is effective as the conservative is placed in a position of either admitting the leftist is right or defending the undefendable.

Trickle-down economics in any general discussion refers to the theory that wealth is transferred from the wealthy to the poor via employment. That is, wealthy people are in a position to start businesses and give the opportunity for poorer people to elevate themselves into the middle-class by creating jobs.

The irony is that trickle-down economics actually does work. Unfortunately neither the leftist nor the conservative knows it. Both ends of the political spectrum mistakingly assume that wealth only exists in the form of dollar currency. If this were true the leftist would be correct; the data clearly shows that currency, and currency equivalence (capital assets) are being accumulated amongst the wealthy elite.

Typically the leftist is missing half of the equation. While they see dollar figures, they are blind to the other side of every transaction: goods and services! Wealth is not dollar currency. Wealth is the accessibility of products and services. Wealth is the ability to access goods and services per dollar. To reduce it further, wealth is the ability to access goods and services per unit of input labour (or the risk equivalent, in the case of investment). Leftists think wealth is distributed by employment that businesses should exist to enrich employees. They forget that the only reason businesses exist is to enrich customers by providing goods and services for evermore higher standards of quality and for evermore lower costs.

If a business offers a car that is higher in quality and lower in cost, all its customers are effectively more wealthy and their paycheck (however they derive their income) has increased. Has wealth really “trickled-down”? Yes it has. Customers recieve an effective payrise every instance a better product for lower price is offered on the market because they can now buy more goods and services per hour that they work. Wealth has literally trickled down from the wealthy elite, thanks to their innovative ideas, calculated market research, risk, and subsequent investments.

Trickle-down economics not only works, it is the most efficient, most moral, most enriching economics system humankind has ever seen. Next time a leftist pulls this one (and they keep pulling it), a conservative can remain steadfast and reassure the leftist that wealth isn't transferred by jobs; wealth is transferred by the accessibility of goods and services.

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