Question:

If trickle down economics work, why would the economic stimulus package give money to the middle class?

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According to conservatives, we need to provide tax breaks for the rich so that they can spend there money to create jobs.

If trickle down is a key tenet of conservative economic strategy, why would you stimulate the economy by giving money to the middle class instead of the rich?

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5 ANSWERS


  1. The obvious answer is that supply-side (aka trickle down) economics was never meant to be anything more than an excuse to reward wealthy supporters of the party proposing it.  When asked to come up with a stimulus policy that you actually expect to work in the short term, everyone is invariably a standard Keynesian.

    Theoretically, the tax structure can be set up to give tax breaks for people who create jobs instead of just blanket tax cuts to the rich in the hopes that they might use their savings to create jobs.  Somehow that idea doesn't get a lot play in political circles.


  2. There is no evidence that trickle down economics work, so when they really want to stimulate the economy (and not just give more money to thier rich buddies) they provide the money to the people who really create jobs- the consumers.


  3. I got tax breaks, too.  I'm middle class and pay taxes.  We spent our 'stimulus package'.  

  4. The rich were supposed to invest the money  and improve  our productivity              and   the economic performance  of the US. The problem is that they spent the money on bigger houses   with fancy bathrooms, and so our economy still sucks and we have doubled the national debt.

  5. So the middle class could spend money on the products provided by the rich (especially gas) so the rich could get richer...

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