I try not to respond to Facebook comments anymore, I shouldn't even be reading these comments as I sometimes feel part of my intelligence is being eroded by some of these opinions.
This occurred when the Morrison government announced increased spending due to the economic shocks of the east coast bushfires closely followed by the impacts of the Coronavirus. We have a long-term situation of low economic growth, albeit positive followed by low wage growth due minimal productivity increases.
The surplus was gone, you can forget about that now, so now the federal government needs to work on stabalising the economy. So when I read a comment on how we all know how trickle down economics never works, I was compelled to reply.
Lindy is describing Gerry (Gerry Harvey Executive Chairman of Harvey Norman) who was asking the government to support local manufacturers (not retailers) in the form of interest free loans to stimulate economic activity.
The trouble is Gerry when you and your ilk get any money hand outs from the government it just goes to your shareholders or into your pockets....none of you ever employ any extra staff.
You just take the money then run and hide.
It’s know as the trickledown effect and has been proven never to work.
The trouble is Gerry when you and your ilk get any money hand outs from the government it just goes to your shareholders or into your pockets....none of you ever employ any extra staff.
You just take the money then run and hide.
It’s know as the trickledown effect and has been proven never to work.
My reply to Lindy was:
The term trickle down economics was first coined by comedian Will Rogers describing Hoover's stimulus package in the depression. If you are referring to supply-side economics, the Laffer Curve was used to plot the relationship between tax rates and receipts to maximise revenue. This may also be known as Reaganomics. Supply-side economics may also be known as Reaganomics.
Adding to that, supply-side theory originated from the Chicago Booth School of Economics, but really dates back to the Nixon era when stagflation heralded the end of Keynesian demand-side policies. I had to keep my reply short, no point long answers of Facebook, Twitter, Instagram or Tumblr.
Not that I am necessarily endorsing supply-side economic theory, I am arguing the terminology trickle-down economics, this is not is what is taught during economics classes. Macro-economic theory should explore both demand-side and supply-side theories analysing strengths and weaknesses of both approaches with the intention of generating new ideas and theories.
Keynesian economic theory pulled the world out of depression, that worked up until the 1970s until simultaneous inflation and unemployment peaked in what became known as stagflation, a situation Keynes stated wouldn’t occur. We need new and updated theories, what worked then doesn't necessarily work now and I agree with Gerry, the government needs to support local manufacturers.
Adding to that, supply-side theory originated from the Chicago Booth School of Economics, but really dates back to the Nixon era when stagflation heralded the end of Keynesian demand-side policies. I had to keep my reply short, no point long answers of Facebook, Twitter, Instagram or Tumblr.
Not that I am necessarily endorsing supply-side economic theory, I am arguing the terminology trickle-down economics, this is not is what is taught during economics classes. Macro-economic theory should explore both demand-side and supply-side theories analysing strengths and weaknesses of both approaches with the intention of generating new ideas and theories.
Keynesian economic theory pulled the world out of depression, that worked up until the 1970s until simultaneous inflation and unemployment peaked in what became known as stagflation, a situation Keynes stated wouldn’t occur. We need new and updated theories, what worked then doesn't necessarily work now and I agree with Gerry, the government needs to support local manufacturers.
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