Ronald Reagan introduced us to "trickle down economics." Bush 1 stole the phrase, "a rising tide lifts all boats." Bush 2 abandons all pretense and calls tax cuts for corporations and the super wealthy a "jobs package." Despite the fact that 25 years of this brand of tax policy has led to the economic ruin we now face is just not sinking in to most Americans. Talk about raising corporate taxes (or even maintaining them) and "trickle down" is immediately trotted out as gospel.
This argument is a fundamental component of Republican propaganda and we have to start countering it.
More--->
"Bubble Up"
The idea is simple; reverse trickle down on its head. Lower taxes for the poor and middle class only. Instead of luring businesses to areas with low taxes, lure them with consumers that are flush with cash. Turn supply side into demand side. Instead of letting the rich get richer so they can dole out low paying jobs (with no health care or pensions), make the poor and middle class richer so they can invigorate business with their purchasing power.
For the sake of debate let's assume that both arguments are wrong. In the case of trickle down, we have what we have now; the rich getting richer, the poor getting poorer, record deficits, millions without health care, etc etc etc. If we try "bubble up" and it doesn't work, the rich are still rich, but the poor are better off.
How can we go wrong?
I'm going to start trying this out on my red state relatives. I'll let you know how it works.
Note: I am not sure where I first heard of "bubble up economics." When I put the phrase into Google, I got two interesting hits right at the top. Richard McKenzie has a disgusting article called, "Bubble-Up Economics": How Tax Cuts for the Rich Help the Poor." His basic premise; a rich person with a 60 foot yacht is more likely to inspire the poor to work hard than a rich person with a mere 40 foot yacht.
More interesting is Robert B. Reich's article "Democratic Economics" at The American Prospect:
http://www.prospect.org/...
Thank you all.