How's about we totally decimate the Republican economic philosophy? Let's demonstrate that this is a totally failed policy and what it's impacts have been! Specifically, we need to dispense with the ideas that "trickle down" economics: (a) provides benefits for the middle-class, (b) provides any benefit to the economy, or (c) is reasonable course of action whatsoever given our current fiscal situation.
We started down the road of "trickle-down" economics in the 1980s and this continued through the present with a brief respite during the Clinton administration. Before this economic policy was started, we were the largest creditor nation in the world. Within 8 years of this policy being put in place, we were the largest debtor nation in the world.
It might be worth mentioning that the only respite in this period was provided by Clinton (D), whose policies led to a budget surplus. This period of respite was reversed again under W as tax cuts and deregulation resumed, eliminating the hard-won surplus, massively increasing the debt, and ultimately leading to W's economic collapse.
The whole idea of trickle down was that giving the rich large tax cuts and deregulating the economy would spur growth enough to offset the tax cuts. This may have occurred for a brief period but never in any sustained fashion. It appears that tax breaks to the rich were generally kept by the rich. During the period of "trickle down", wealth has been increasingly accumulated by those at the top, and as this is a zero sum game, the middle class and lower class have been starved of income as a result. Mitt Romney's policies will exacerbate this effect, giving more wealth to a small group of those who are already rich, and starving the wealth of the middle and lower classes to an even greater extent. We need to press the point that if you are middle class, the Republican economic policy HURTS you. Too many people do not seem to understand this, and we need to let them know in no uncertain terms.
As far as the effects of "trickle down" on the economy, there is a general consensus that economic growth is inhibited when wealth is concentrated at the top and that greater income equality has a positive effect on economic growth (Saastamoinen, 2006). More equally shared wealth, which could be described as “a large middle-class”, enhances the economy’s growth prospects. This may account, in part, for the slow pace of recovery we are currently experiencing. Not enough wealth in the hands of the middle class (who would spend it) and too much wealth in the hands of the rich (who would tend to hoard it in a poor economy) is a recipe for slow growth, and this is exactly what Romney is proposing. Such a policy, if instituted, would likely kill the current recovery.
Finally, the idea of a 5 trillion dollar tax cut that would predominantly benefit the rich again (on top of those they have already received) is simply fiscally irresponsible, as if the unnecessary 2 trillion increase in military spending.
We cannot pussyfoot around on this issue. This economic policy needs to die. Immediately! Doing so would emasculate the Republican party, lead to a more rational and beneficial fiscal policy, and perhaps allow the USA can regain its greatness once again.
