Because trickle down doesn't work. We've seen that empirically in history. It also doesn't make any sense since it violates the rules of capitalism as well as the reality of the world.
Trickle down economics is inherently non-capitalist. In capitalism all economic activity is driven by demand. Trickle down proposes that economic growth can be created in the absence of demand, which is nonsense. Giving more money to the rich doesn't create economic growth for several reasons. On a real world level, people are mostly employed by companies and not by wealthy individuals, so personal income tax cuts for the wealthy aren't going to increase hiring or business investment. On the theoretical level there's two more problems. First is that the rich already have more money than they need, that's why they're rich. So giving them even more money isn't going to spur productive investment. Second, people and businesses don't hire new workers just because they've got extra money sitting around. They only hire workers because they need their labor to meet demand. Absent any demand, you're not going to see investment. That's capitalism 101. Finally, personal spending by the rich simply can't sustain the economy. Rich people do spend more than middle class people, but not so much more that it's in proportion to their income. The median American income is $50,000 a year. Someone making a million dollars a year makes twenty times as much. But that millionaire isn't going to be spending 20 times as much on clothes, or food, or movie tickets, or books. It's simply not going to happen. There are some industries which cater to the rich but they're very marginal employers. The truly big companies sell to the masses and that's where the money is: in he average people as a whole. Economic policies which seek to give more money to the poor, working, and middle classes are much better at stimulating the economy. This is because lower income people actually spend most of the money they get. That's why poor people are poor, because they don't have excess money stashed away. They need more spending power and so when they get more money they actually go out and spend it.
· 3 months ago