In the simplest terms:
If the super wealthy, the people,at the top, are allowed to keep their money, and don’t have to give a substantial amount of it to the government to fund government programmes, everybody will benefit. Their wealth will ‘trickle down’ to the rest of us.
It’s the logic behind Trump’s tax plan.
Let the rich keep their money, and the rich, smarter and better than everyone else, will invest it. Their investments will create jobs for those who don’t have money and need to work for a living.
This may convince people in theory, but in reality it’s complete bollocks.
Yes, the stock market will thrive. The value of shares will go up. But do not mistake this as a sign of a truly healthy economy or society. When a company’s shares go up, it usually means that less workers are doing more for smaller paychecks. The workers are being squeezed like lemons and the wealth flows to the top.
Wealth in any kind of society, capitalist or communist, has the tendency to flow up and to end up in the hands of only a few.
So far the only healthy way we’ve ever tried to counter this is to tax the richer far more than the workers.
The workers will spend most of that money anyway, and it will flow back up, it always flows up, whether you tax the rich or not.
With trickle down economics you reduce almost everything to individual economic enterprise. It’s every man and woman to himself or herself. When the rich aren’t taxed there’s no money for universal health care, excellent public schooling, educational cultural programmes, etc, more and more depends on charity.
The only thing there’s always more tax money for is to buy military equipment.
Which is one other way that tax money ends up in the pockets of the super wealthy. Who do you think owns the companies that produce military equipment?
The sad thing is that the workers enthusiastically vote for their own executioners. As a result they work longer hours for less money, make the super wealthy ever richer, and have to pay more for decent education, health care, etc.
On top of that the USA’s -where trickle down economics is tightly embraced- infrastructure is crumbling.
You cannot leave everything up to the super rich, because the super rich – a tiny minority- have only one interest and that is to keep their own wealth.
Even those billionaires who pledge to give a lot of their money to charity can’t undo the damage of this political trend. First of all, their wealth becomes too big to be democratic, it shouldn’t be left to a couple of people to decide where enormous sums of money go to, and second of all, when billionaires give to charity, it can be to make use of a tax advantage, not because they are so generous. Sometimes it’s better to give to charity than to pay more in taxes, if you do not give to charity.
A long cure of trickle down economics will wipe out the middle class, and you will end up with lots of poor and a tiny minority of very wealthy individuals.
Unfortunately that’s the road we have chosen and even those who see where it leads are doing nothing effective to change the course.