Monday, November 20, 2017

That's Not How It Works

I'm going to step out of my Comfort Zone and talk about something I know little of. Actually, some might argue, that is my Comfort Zone.

In any case, when it comes to Economics or Macro-Economics, I'm a self admitted lightweight. I took an Economics course in college, during my freshmen year, when I was still too stupid to realize you never sign up for an 8:30 class. Especially in Syracuse, where at 8:30 in the morning, the temperature hasn't made it into the positive integers yet.

On the other hand, I'm a member of the Tribe. And it's rumored we know a thing or two about money.

In a recent poll conducted in Mobile, Alabama, the intellectual capitol of the world, 9 out of 10 locals were prepared to say,

"...'dem Jews, geez, they can turn a dime into a dollar."

As far I'm concerned, that's as good as a PhD.

Which brings us to the Trickle Down Theory and the House of Representatives proposed "Let's Fuck American Workers and Hand All the Money Over to the Robber Barons Tax Plan." I'm afraid I might have tipped my cards and telegraphed where this is going.

Unfortunately most Americans can't see the forest for the trees. Particularly the ones who put Precedent Shitgibbon in office. I guess their memories are not as stout as his. Because for the last 8 years all we heard was how the national deficit was ballooning and would bankrupt our children.

Which is funny because this new plan does nothing to reduce our debt. And in fact, despite the earlier protestations of Paul Ryan, actually ADDS close to 2 trillion dollars in red ink. Sooooo, we're not kicking the can down the road, we're picking up the #10 can of industrial-grade tomato paste and bludgeoning our children on the head with it.

Oh but Rich you're so Old School. In the new school of "Dynamic Economics", numbers and data are more fluid. Malleable. More forgiving to old wealthy white men, who, let's face it, are better at this money thing than working class stiffs will ever be.

And there's the other side of the coin.

Sure, we're adding to our debt, but we'll be taking away useless tax deductions like mortgage interest for homeowners and student loan interest for college students, and putting that moolah in the hands of people who are going to invest in factories, infrastructure and research and development.

And that investment is going to produce growth, like some magic Chia pet. And that overgrown leafy Chia pet will create jobs. Jobs. And more jobs.


I've been in the corporate world and rubbed shoulders with a few wealthy people to know that money does not trickle down. Money defies gravity and trickles up. One need only to look at the wage disparity between today's CEO's and today's shipping clerk, forklift driver or freelance copywriter. In days of old it might have been a multiple of 30:1. Open up a corporate earnings report today and you'll see it's as high as 1000:1.

If you want to verse yourself in the ways of cashflow, I suggest you stop sucking on the teat of failed Republican economic theory -- 2008 was less than 10 years ago -- and binge watch a few Martin Scorsese movies.

Little white envelopes.

Stuffed with cash.

Skimmed, laundered and handed up to the line to the Capos and the Dons.

That's how money works in America.

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