ECONOMIES NEVER TRICKLE UP

Money is not a static commodity. It has to be moving to be of any value. There has never been a time when a poor man has offered me a job. Jobs become available when companies need help to produce product that will generate profit. Let’s blow up another myth. Governments don’t produce anything. Governments don’t make money. Governments only spend money. They create rules and regulations designed to control those who produce the very money they need for their projects. Governments seem to believe they are better at spending money than those who produce it. Sadly, all one has to do is look at the track record of our own government to prove the validity of that statement. If practice made them good at it, they should be experts by now.

So, comes now a tax reform package. This reform should cut the income taxes for most Americans and for most corporations. Obviously the plan is for that money to be utilized by the recipients and spent. Individuals and families, who will receive approximately $2000 in lower taxes, will have greater spending power in 2018. The Obamacare penalty will be eliminated.  Corporations will benefit the most by a huge reduction in their tax responsibility. It is expected they will use that additional money to expand and grow their businesses. That will require more employees. That additional growth will cause all around it to also grow. Transportation will be needed to move product. More spending by individuals will also create more jobs and opportunity. Restaurants will see an increase in business as more people eat out. In fact, every element in our economy will benefit from this tax reduction. America will be the winner. The only losers will be the Democrats who refused to participate in this most beneficial tax reduction.

Imagine the election next year when the economy is roaring, the stock market is exploding, and we are experiencing near full employment, and a Democrat goes to the voters asking them to reelect him or her to continue their resistance and obstruction. Do you think that might be a tough sell? Can you see their campaign literature? “The economy is roaring and unemployment is at an all time low. Paychecks are higher. Our borders are secure and the stock market is continuing upward, in spite of everything I did to stifle and obstruct it. Vote for me to continue harming our country and our way of life.” Even for the liberals that will be hard to get a handle on.

What we are talking about here is the “trickle down economy” that was made famous by Ronald Reagan a few years ago. It worked then and it will work now. Economies never trickle up. Money flows downhill, never uphill. When governments take your money away from you to fund various boondoggles and pet projects, very few benefit. When that same money is in the hands of the very people who earned it and subsequently spent by them, economies grow. That, ladies and gentlemen, is basic economics.

Some have said the very rich will not spend the money. They will just put it in the bank or the stock market. Don’t they understand that the money they deposit will become the funding for new cars and new houses? It will fund the creation of new businesses. Money doesn’t just sit still. It is always moving. The only way to stop the movement is to put it in a jar and bury it in the ground or maybe tax it to allow the government to have control over it and its spending.

I have always been puzzled by Democrats, especially highly educated Democrats, who cannot seem to grasp basic economics. They can’t or they just won’t. Either way, this economy will grow with this tax reform package with or without Democrat help.

As President Trump has said, this will be a great Christmas gift to America. Remember who voted for it and more importantly who voted against it.

Ron Scarbro