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The logic of the con—the perversity of it—is becoming normalized.
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People talk about, and financially depend on, side hustles. An alleged grifter sits in the Oval Office, near a bust of Andrew Jackson and the nuclear codes.
Fyre frauded as it fested. This is a time, in America, of deep inequality; it is also a time in which—in part because people and truths have been newly laid bare to each other by the workings of the internet—new injustices are revealed every day.
To learn about the college-admissions scam is to be overcome with that distinctly modern feeling: simultaneous shock and unsurprise. Horror and numbness. Scams, after all, in the present moment, are atmospheric. They are miasmic, hovering in us and around us, their toxins trapped in human lungs and expelled into the warming air.
Trickle-down theory is more specific.
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It says targeted tax cuts work better than general ones. It doesn't promote across-the-board tax cuts.
Instead, the tax cuts go to the wealthy. Arthur Laffer showed how tax cuts provide a powerful multiplication effect. The resulting expanded, prosperous economy provides a larger tax base.
Reagan cut taxes significantly. Trickle-down economics was not the only reason for the recovery, though.
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- When Trickle-Down Economics Works.
Most of the spending went to defense. Trickle-down economics, in its pure form, was never tested. It's just as likely that massive government spending ended the recession. That ended the recession by November of that year.
Trump's Defense Splurge Won't Trickle Down To Working Soldiers
That ended the recession by November of that year. That often occurs because unemployment is a lagging indicator. It takes time for companies to start hiring again, even after a recession has ended. It appeared that the tax cuts worked. In this situation, it's unclear whether tax cuts or monetary policy caused the recovery.
Instead, the opposite occurred. Between and , after-tax household income rose 6 percent for the bottom fifth. That sounds great until you see what happened for the top fifth. Their income increased by 80 percent.
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The top 1 percent saw their income triple. The top individual tax rate drops to 37 percent.
The corporate cuts are permanent while the individual changes expire at the end of