Reply #70: Trickle Down [View All]

[unlawflcombatnt]

They certainly don't like that. That doesn't help any part of our economy. And I don't think labor/consumer income can be maintained on the production of "big stuff" alone. How would farmers and small businesses stay in business, and employ workers?

The problem with "trickle down" is that there is an implied limitless amount of demand. The error is that there is not a limitless supply of demand when measured in dollars. In fact, the dollar-value of demand is strictly limited by income and the amount of money that can be borrowed. With wages declining, and borrowing nearing its limit, we are definitely nearing the limits of the dollar-value of demand.