Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search
1 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
If WalMart made $20 Billion in profits .... (Original Post) Scuba Dec 2013 OP
trickle down is indeed a lie, of course, but no, that's not why. unblock Dec 2013 #1

unblock

(52,181 posts)
1. trickle down is indeed a lie, of course, but no, that's not why.
Mon Dec 9, 2013, 03:11 PM
Dec 2013

supply-side craponomics never said that companies would simply hand over profit to employees in the form of higher wages. that's not consistent with any model of economics.

voodoo economics instead expected that huge mal-wart profits (or otherwise shifting more resources to sellers) would create richer investors, who would then create new businesses, which would then higher more workers and make more resources more readily accessible and so on. alternatively, mal-wart would themselves expand, leading in principle to a similar result.

mal-wart workers would then benefit by switching to newly available better jobs, or, only then, mal-wart would be forced by the market to pay more to keep workers.


of course, the big flaw is the economy is a delicate system that thrives best when kept in a careful balance, so stimulating the supply-side really only works when supply is weak. that hasn't been a problem for a long time and yet the supply-side stupidity continues because few things sell as well as greed, just so long as you don't call it by its proper name.





Latest Discussions»General Discussion»If WalMart made $20 Billi...