Yeah. So it is true that rich people can spend more money than middle class people, but there’s this upper limit on what we can spend. I drive a very nice car, but it’s only one car. I don’t own a thousand, even though I earn a thousand times the median wage. I have a few jackets, not a few thousand. My family can afford to go out to eat more than most American families, but not more than three times a day. We can’t go out 3,000 times a day.
So if you concentrate wealth in the hands of a very few people, you break down this feedback loop between customers and businesses. My family, among other businesses, owns a pillow company, and the pillow business is tough because fewer and fewer people can afford to buy pillows. Again, I may earn a thousand times the median wage, but I don’t sleep on a thousand pillows.
You need everyone to be able to afford a pillow every year in order to have a successful pillow business, and concentrating wealth at the top essentially creates a death spiral of falling demand.
To me it just seems common sense that if you want an economy to thrive you put money in the hands of people who will spend it. Putting it in the hands of those who will simply stash it away with an already absurd bank account does nothing for the good of the country or its citizens.
Trickle down is still the mantra of many in the GOP, especially Mr. Ryan. If they get their way all social services would cease to exist and everyone would be left to themselves. Ayn Rand, who is Mr. Ryan’s hero, believed that altruism, that is caring for humanity, is a weakness and not a strength and it needs to be driven out of any truly successful society. That mentality seems to permeate those who are at the very conservative margins of our country now days.
It seems there are basically two distinctively different types of people in the U.S. There are those who love and care about everyone at least on some level and this includes people they don’t know. Then sadly there are those who care seemingly only care about themselves and maybe their immediate families. Everyone else is to be feared on some level or simply of no or little consequence to them.
Trickle down does not nor has it ever worked. Raising the minimum wage and giving workers their fair share of the rewards benefits everyone, even those who believe in trickle down.