In an epic speech, Senator Bernie Sanders argues that the Trickle-Down Economic policies pursued by the current and previous administration are a war on the American middle class and American workers. (video below)
The Trickle-Down Economics Lie
Trickle Down economic policies were manufactured and enacted during the Reaganomics era to benefit the 1% and “too big to fail” corporate interests.
How the Republicans claim Trickle-Down Economics works
Republicans believe that the economy will grow if we just give more tax breaks to millionaires, billionaires and the largest corporations in America.
They refer to this top 1% as the “makers” or the “job creators” and that — they insist — that if we just rub their bellies just right…deregulating markets, slashing taxes and all of these nice things for the wealthy and the powerful, that we can coax them into building an economy that works for everyone.
The Truth about Trickle-Down Economics
The only problem with that theory is that it has been tried. And the evidence is overwhelming that it has FAILED.
This chart demonstrates what has happened to income distributions since 1980. The wealth is definitely not “trickling down”.
- The top marginal income tax rate has plunged from 70% to 35%. The wealthiest people wanted a reduction….they got it.
- The corporate income tax rate fell from 46% to 35% (although many corporations don’t even pay 35% due to loopholes)
- Taxes on capital gains fell from 28% to 15%.
- We deregulated airlines, telecommunications, energy and most disastrously — Wall Street.
We did all of the things that the wealthy and the powerful wanted us to do.
But instead of unleashing the “job creators” and ushering in a new golden age that benefits all people, these supply-side gimmicks brought us widening inequality and greater financial instability.
These experiments failed.
- Our economy has become more unstable.
- The distribution of wealth and income has become more unequal. The distribution of wealth today is worse than at any time since 1917.
- It takes the system longer and longer to claw back the jobs that are lost each time we suffer a recession.
No society has ever flourished without a large prosperous middle class.
For the first time since the Great Depression, our economy is growing in a way that is leaving most of our citizens no better off.
Ordinary people will not stand by and watch as their economies unravel and as their democracies unravel.
I am an ordinary person. You are an ordinary person. Join the movement today.
When millions of people stand up and fight they win.” – Bernie Sanders