Lions.
I am of the opinion that Trickle Down Economics does not work. I have covered this at length many times.
The overall theory of Trickle Down Economics is this; that by making the rich richer we all benefit. (This is a LIE).
Today, every so called developed economy has implemented some version of Trickle Down Economics. The result is well, in our face. The world is producing more millionaires and billionaires today than at any other time in history, while at the same time, we are seeing a virtual elimination of the middle-class. In reality Trickle Down Economics is THE NUMBER ONE KILLER of small businesses AND National Economies..
So is there an alternative?
Yes there is! And here is how it begins, JUST TWO STEPS.
STEP NUMBER ONE.
The KEY here as to what would be a REVOLUTION to flip the “trickle down” system into a system which would benefit the average person is First, A STRONGER CURRENCY.
A stronger currency NOT just based upon “relative strength,” or comparative strength of one currency vs another, but a currency with more purchasing power.
Having a weak currency fulfills the corporate/multinational agenda in that it allows corporations who transact overseas to benefit via the exchange rate adding to corporate profit. The side effect of this is it KILLS small business here in the United States who do not transact overseas, its also the same for every other National Economy. It is hard to argue that here in the America alone, GONE are the mom and pop shops of yesterday, in favor of the corporate structure.
Small business was the BACK BONE of America, and the world, for many many decades. Small business provided most of the jobs here in the US. Moreover, it created opportunity for people to one day own their own businesses.
A weak currency is an economic KILLER of Nations.
Sure, corporations WANT a weak currency as again they benefit from the overseas exchange rate and reap the rewards, but how does that help the economy grow from the bottom up? Here is a clue, IT DOESNT.
A strong currency ALONE would encourage, greatly, a re-emergence of US small business and entrepreneurship. This alone would provide NEW JOBS for people, and massive opportunities for We The People to GROW THEIR OUR ECONOMY.
STEP NUMBER TWO.
Higher Borrowing Costs.
Sure the lure of low rates sounds good on paper… People can go out an take out a series of loans, credit cards, personal loans, etc. and pile on debt, and “only” have to pay X interest to do it. This mechanism is highly destructive to the middle class. Its just too easy to get in WAY over your head with easy access to so called “easy money.”
Here again, lower rates fulfills the corporate agenda.
With low rates, corporations can borrow to grow their business for next to nothing, while at the same time selling corporate bonds/debt to finance the cost of borrowing. Today here in America, and around the word, we have historically low rates, meanwhile central banks are planning to lower rates even more moving forward.
Higher rates promotes economic growth AT HOME.
Competitiveness.
High borrowing costs allows small businesses to streamline their business model, and not take on oceans of debt which unlike corporations who sell bonds/debt to finance borrowing, must find better ways to grow their business.
Higher borrowing costs also takes away the lure of borrowing for the average person, easy money is not so easy to get, and this further promotes financial responsibility.
Lions… there is much more to this, and I will cover more in my work moving forward, BUT HERE IS A START!
GM