This is a guest editorial from Teddy Ackerman.
Do you recall the tale of Robin Hood? He was a figure in 13th Century England. The story starts in the usual way. (Good) King Richard has been off battling the crusades, which obviously runs up some national debt. His brother, John (the Bad) runs the country in his absence, so, in order to finance the wars, he imposes harsh taxes on the regular people who can distribute it to the royalty, the aristocracy and the army. You can be your own judge as to whether King Richard was “Good” and King John was “Bad”. In defense of the common people, out comes a popular outlaw figure named Robin Hood. Robin Hood takes from the rich to give to the poor. Nowadays, he would be labeled by the extreme right wing as a terrible Socialist.
Let us skip to the end of 1980, Ronald Reagan has been elected President of the United States, and brings out an old Herbert Hoover plan, called the trickle down theory. The theory supposes that if you give more money to the rich, they will create more jobs are more wealth for the rest of the country. The critics of the plan, say that giving money to the rich will only make the rich richer. And furthermore that the giving of more money to the wealth is in all actuality coming from the poor and so, in effect, it is a “Reverse Robin Hood” effect. But the rich and powerful get their way and we have been living the Reverse Robin Hood theory experiment upon the United States for over the past 30 years.
The Result of the Trickle Down Theory over 30 years
The above link clearly demonstrates, using an easy to read graph, a steep increase in riches for the top 1% and no increase for the bottom 90%, in fact, due to inflation are making less money than in 1980.
This alternate above graph shows the same but it is a much busier slide (but you don’t have to clink on the link).
The above pie charts demonstrate that the top 1% have significantly increased their overall % of total wealth from 10.5% to 21.8% from 1979 to 2007. The middle 3/5 of the population have seen their share of wealth decrease during the same time from 47.8% to 38.5%. This is data from the trickle down experiment. And, the result, as could be expected, giving money to the rich only make the rich wealthier, and the middle class and poor – poorer.
The trickle down theory or Reverse Robin Hood effect did what people with common sense predicted: Giving money to the wealthy, did not create more jobs, in fact, saw a decrease of jobs (especially in manufacturing, 10 million jobs lost) in the United States, made the rich richer and everybody else poorer. We need to elect people who want to eliminate trickle down economics and eliminate even more tax breaks to the ultra-wealthy. We need to re-build the U.S. economy whose fortunes have diminished because we have been following voodoo economics for the past 30 years. We need a plan. And the plan needs to include rebuilding our manufacturing base, while increasing our exports and decreasing our imports. No more trickle-down. Robin Hood would be proud if you joined his movement. -Teddy Ackerman
The above guest editorial does not necessarily reflect the opinions of this blog.