What trickles down in the trickle down economy?
I have owned a service company for 30+ years now. The people who work for me are unskilled laborers with limited education. During the 1990s, demand for services was high. I employed over 60 people, with starting pay at $14 per hour with medical benefits. The 1990s were good and the company prospered. The last 7 years have been entirely different. Demand has fallen. This year is proving to be the worst in all my years of business. I am down to 12 employees. New hires start at $8 per hour, and I no longer can offer medical benefits. What is different, for the most part, is my customer base. During the 90s, The majority of my customers were middle-class people. Very little of my business was with corporations and wealthier individuals. Today that trend is reversed. Most of my customers today are big corporations, who continuously demand lower prices from me in order to retain their business. Wealthy individual do the same as well. They haggle to squeeze the lowest price possible. It's clear to me, at least, that the money in this country has been concentrated at the top on the income chain over the last 7 years. What has trickled down is lower wages at the already low wage levels. Big business and wealthy people do not create more jobs when they have more money. The concentration of wealth at the top of the chain has only allowed investment in foreign developing country, where big business can hire cheaper labor. This process is taking more and more money out of circulation in this country, which leaves less money for those people at the bottom of the chain. In my experience, prosperity for me has been dependent on a healthy middle-class, not a wealthier wealthy class. The middle-class seems to be accepting this trade off because big business is delivering cheaper consumer products, saving them money. All the while, however, the cost of necessities are increasing at a rate surpassing their income growth. No one seems to be noticing that demand is dwindling in this country from the bottom income spenders, who spend the most of their incomes in the market. People who work for me can no longer afford to buy items like TVs, new cars, or what have you. People who work for me have moved to lower rent neighborhoods with higher crime rates. Their standard of living has declined. People who work for me no longer have medical coverage and have their medical bills covered by state programs, taxpayers money. As long as America holds onto this trickle down economic system, the lower income wage earners are going to earn lower and lower wages. Their basic needs will have to be paid by taxpayers. Companies like mine will disappear because their isn't enough profit to make it worthwhile.
Asked By: .... . .-.. .-.. --- - 6/23/2007
Best Answer - Chosen by Asker
President of the United States, serving his second term until January of 2009, after finishing his first in Jan. of 2005... More
Answered By: Bassman - 6/23/2007
Additional Answers (15)
Answered By: don45123 - 6/23/2007
The same thing that trickled down RWR's leg every time he went to the bathroom!
Answered By: Monk - 6/23/2007
You do not mention what the service is? It would be useful to know all the details before coming to a conclusion.
Answered By: jhl - 6/23/2007
Trickle Down Economy = US 1% get richer and move corporations to China = Chinese people gets jobs and build nuclear bombs = aim it at the US They also prefer to build castles in Europe
Answered By: Taco - 6/23/2007
This is an excellent observation, related by one who is speaking from direct experience... More
Answered By: Bert T - 6/23/2007
This is an eloquent and indeed moving testimonial. The problem with conservative economic policies is that they are based on Milton Friedman - and have never been updated as so many exigencies have changed over the decades. Economics isn't an absolute - it's a tool, but cons don't understand that.
Answered By: Alias Smith & Jones - 6/23/2007
Answered By: Roy - 6/23/2007
hey bassman, thats the best answer i have heard on this site. but wait until those bush loving, rush want to be's respond to it
Answered By: jimmy z - 6/23/2007
Think of it as the Tinkle down economy and you will get its true meaning... More
Answered By: Fancy That - 6/23/2007
You believe that higher taxation, meaning we all pay more to pay the corporate taxes is the fix? Would you consider instead that it is the way we have dealt with illegals in this country for the last eight years that is the real culprit? Clinton did enforce our immigration laws ,not the best but he did, George Bush has... More
Answered By: Locutus - 6/23/2007
The dwindling wages of working Americans is nothing new... More
Answered By: trouble maker - 6/23/2007
That warm fuzzy feeling trickling down from above isn't coins clinking down your back.
Answered By: flushles - 6/23/2007
The downside to trickle down economics is that the wealthier get wealthier. Our jobs get outsource to foreign countries and in the end the middle class gets a kick in the ass.
Answered By: cynical - 6/23/2007
Lies, poverty and the ever lowering life-style of average Americans is what most get from the trickle-down theory. Most of my work is in the largest, self-contained retirement community in the U.S., it's called The Villages and located in central Florida. I wouldn't call these people super wealthy but I'm sure many of... More
Answered By: right you are ken - 6/23/2007
Wow. I must say, well said. I think you hit the nail on the head. As to your question... let me posit these thoughts... More
Answered By: leftist1234 - 6/23/2007
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