I have neither the time nor the strength to argue whether wealthy tax cuts or middle-class consumerism is the keystone of our economy. I would like to discuss the fundamental ideology of supply-side economics, otherwise known as the trickle-down theory, which conservatives hold so dearly.
President Reagan made supply-side economics popular during the 1980s by cutting funding for domestic programs and enacting a tax cut that mostly benefited the rich. He believed, as President Bush does, that wealthy taxpayers will use their outrageously vast resources to stimulate the economy through spending and investment.
The hope is that when and if the rich invest, some money may trickle down to the rest of the population. The middle and lower class will receive a small portion of the tax break, but as CNN has reported, 50 percent of all the proceeds will go to the top five percent of all taxpayers.
It is arguable whether this method will provide a lift to the entire economy, but what bothers me is that the economic future of this country lies in the hands of the richest five percent of Americans.
The ideology is reminiscent of the Feudalistic Age in Europe. I feel that supply-side economics is dripping with subordination and condescension. Why should the middle class benefit only if some money happens to trickle down from the rich? The semantics alone are insulting and arrogant.
The top five percent get 50 percent of the benefits, while over 90 percent of the rest of us are left to fight over what may trickle down. This makes me feel like a peasant who hopes his lord will provide some alms for the poor.
The middle class is placed in the subordinate role. These are the people who work in the factories, build the factories and buy products from the factories, yet our economic relief lies in the balance of wealthy taxpayers' spending habits.
There is no guarantee the rich will create jobs. Many people may be hesitant to invest large amounts of money because of the volatile environment that terrorism has created. Many economists argue that it was military spending that stimulated the economy in the 1980s, not wealthy tax relief.
There is no absolute solution to our economic problem, but giving the rich more money under the guise of economic stimulation is fraudulent and insulting. Don't be fooled by the speculative rhetoric of government officials. Of course they believe a tax cut for the wealthy will help the economy -- these officials and their financial supporters are rich!
Republicans usually claim that the poor squander their resources, keeping them in poverty. Here is an idea: Why don't we give millions of dollars to the poor and let them squander it away on products -- stimulating consumerism -- and hope some money trickles up to the rich?
Write to Justin at jdvail79@hotmail.com
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