We should be exhausted by an argument that has already been proven false both theoretically and through lived reality. We continue the debate on tax cuts hoping that magically trickle-down economics will eventually start working. I explain in the most simple terms why it is time to stop buying into the lie.
Here is the simple explanation of why tax cuts do not work to generate more jobs and make an economy more dynamic.
Tax cuts don't work
Over the years many have written blogs and articles pointing out that Republican policies always harm the economy. In my article "Do not allow Republicans to destroy the economy again – It’s your duty" I tried to remind Americans of the following.
Over the last few decades, the American poor and middle class have been stagnant. Financial wellbeing from policy changes in the economy was anathema to all but those at the top. Americans are unwittingly responsible for this stagnation and must stop it now.
Americans cannot allow Republicans to once again destroy the economy. It is true that over the last several election cycles, Republicans with their fiscal irresponsibility required Democrats to clean up the mess. There is a direct correlation between policy and outcome. We took our eye off of the ball. We must not allow the GOP to continue to fool us with false information and platitudes. ...
In other words history proves that every time Republicans experiment with the fantasy that tax cuts and tax regulations create faster growth and a good economy, they've failed. And in fact, Democrats come into power, clean things up and make things better compared to the past Republican administration. Americans must learn this lesson once and for all.
Robert Reich's article "Why we need rise-up economics, not trickle down," says it best.
How to build the economy? Not through trickle-down economics. Tax cuts to the rich and big corporations don’t lead to more investment and jobs.
The only real way to build the economy is through “rise-up” economics: Investments in our people – their education and skills, their health, and the roads and bridges and public transportation that connects them.
Trickle-down doesn’t work because money is global. Corporations and the rich whose taxes are cut invest the extra money wherever around the world they can get the highest return.
Rise-up economics works because American workers are the only resources uniquely American. Their productivity is the key to our future standard of living. And that productivity depends on their education, health, and infrastructure.
And of course, Reich's article specifically on Trumponomics is one everyone must read. The rhetoric from the Right and the GOP does not match reality.