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We have had 30 years of "Trickle-Down Economics" and a huge chunk of the population still believes in it.  President Obama has been saying he wants to build the economy from the "middle out" but it hasn't caught on as a catch-phrase.

Lets go below the squiggle for an alternative...

I, for one, would love to hear him use "Demand Driven Economics" because I think it would make more sense to people.  Even uneducated people have a basic idea of capitalism as "supply and demand".  It isn't hard to get them to understand where we are by saying something like this...

You need 2 things to drive an economy - demand for goods and investment in businesses to supply those goods.  We've had 30 years of emphasizing investment and the result is that many corporations are sitting on vast cash reserves.  There isn't enough demand to provide a good investment for that cash.  We need to focus on creating demand now until we can get things in balance and to create demand we need to increase the income of the middle and lower classes.

There are lots of variations and ways to expand this (like give a little history of tax rates comparing rates in the boom years to now or compare the sources of taxes for those time periods) that are brief and easy to understand.

We have to get control of the narrative around the economy.  We need to show that the economy has done better under dems than repubs and that states with repub governments are the poorest economically and in many social services that impact quality of life.

"Middle out" just isn't catching on and we can do better.


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Comment Preferences

  •  Good point (1+ / 0-)
    Recommended by:

    Supply side still reins in the eyes of the Republicans and even in the economic development policies advocated in my blue state. The theory is, do everything to support profit making ventures that sell products or services out of the region or state, and there will be a trickle down effect to raise all boats. Except there isn't.  Instead of only supporting innovative new businesses they could reduce the state or regions imports, especially of fossil fuels, so that more of the things people buy will be produced in state or in the region. Even the Democrats are blind to this insofar as they, especially POTUS, advocate unbounded free trade.

    Also it would be nice to see efforts to prevent private equity from sucking all of the value out of already established businesses.

    But your point is a valid one: we need to increase aggregate demand, and the best way to do that is government spending on things like renewable energy and r&d in general.

    •  Yes, people understand supply side because (0+ / 0-)

      they have heard it for years.  But it is also intuitively obvious that if you don't have demand, you go out of business no matter how much capital you have.   The bulk of voters aren't going to get complexities - they still can't get marginal tax rates - but this they can understand and it is a way to make them see that supporting the rich is NOT in their best economic interest.  

  •  You are right (0+ / 0-)

    Perception is everything.

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