A Quote by Joseph Stiglitz
I trace the inequality to a particular set of decisions that we took when we lowered the tax rate from 91% down to very low levels at the top, where we stripped away regulations. So the result of that was not a more dynamic economy, but a more unequal society. We tried the experiment of trickle-down. A third of a century later, we can say fairly definitively that it was a failure.
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It was shameful that, after Haiti, Colombia was the second most unequal country in Latin America. But we've achieved some things; the inequality is coming down, and coming down fast. The growing economy has provided us with the funds to finance a very progressive social policy that has reduced extreme poverty. We have the lowest inflation rate of all Latin-America countries and the highest growth rate.
The Republican Party is doubling down on this trickle-down theory that says, 'Thou shalt concentrate wealth at the very top of our society. Thou shalt remove regulation from wherever you find it, even on Wall Street. And thou shalt keep wages low for American workers so that we can be more competitive.'
There is a theory that basically says that we can shred regulations and consumer protections and give more and more to the most, and somehow prosperity will trickle down. It hasn't worked. And I think that the fundamentals of the economy have to be measured by whether or not the middle class is getting a fair shake.
It's kind of hard to sell 'trickle down,' so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory.
Every time in this century we've lowered the tax rates across the board, on employment, on saving, investment and risk-taking in this economy, revenues went up, not down.
If top marginal income tax rates are set too high, they discourage productive economic activity. In the limit, a top marginal income tax rate of 100 percent would mean that taxpayers would gain nothing from working harder or investing more. In contrast, a higher top marginal rate on consumption would actually encourage savings and investment. A top marginal consumption tax rate of 100 percent would simply mean that if a wealthy family spent an extra dollar, it would also owe an additional dollar of tax.
I do not believe that the top rate should be lowered for individuals who are making more than $1 million a year. I don't think there's any need to eliminate the estate tax.
Trickle-down racism, trickle-down bigotry, trickle-down misogyny, all these things are extraordinarily dangerous to the heart and character of America.
Some people say we have this inequality because some people have been contributing much more to our society, and so it's fair that they get more. But then you look at the people who are at the top, and you realize they're not the people who have transformed our economy, our society.
I don't want to see trickle down racism. I don't want to see a president of the United States saying things which change the character of the generations of Americans that are following. Presidents have an impact on the nature of our nature. And trickle down racism, trickle down bigotry, and trickle down misogyny, all these extraordinarily dangerous to the heart and character of America.
[Donald] Trump and all the Republicans believe in the theory of trickle down economics which is a theory discredited even by the author himself David Stockton. The theory suggests that if we take care of the people at the top, if we cut taxes for the wealthy, if we make sure they are doing really well, then the investments that they make in the economy and the jobs that will create, will make everything grow and it will have a trickle down effect on the rest of us.
If Trump and his team are able to lower the corporate tax rate to 15%, you look out. The left have told people that corporations are gonna hide the money or shelter the money or keep it for the CEO. They're not gonna give it away, they're not gonna sharing it, it isn't gonna trickle down. You watch.
Tolerance and understanding won't 'trickle down' in our society any more than wealth does.
The Great Depression was not a sign of the failure of monetary policy or a result of the failure of the market system as was widely interpreted. It was instead a consequence of a very serious government failure, in particular a failure in the monetary authorities to do what they'd initially been set up to do.
There have always been two theories about inequality. One is that it reflects just deserts. The other is that there are large elements of exploitation and inequality of opportunities. The evidence is overwhelmingly that the increase in inequality is associated with those negative factors. If it were all social contribution, then when the top did better, they would be contributing to everybody's well-being. That trickle-down hasn't happened. We've seen median income, people in the middle, actually worse off than they were 25 years ago.
The reality is the most important thing that can be done are these permanent changes like to the tax code, reduction of government spending. These are the things that pop up in economy and move it in the right direction, start to make it an economy that is moving because of the money in the private economy. When you think about it, when the Fed is lowering an interest rate, what it's doing is it's creating more liquidity. It's putting more money into the economy. The same thing happens when you reduce the tax except if happens from physical policy.
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