Thursday, October 18, 2007

Trickle-up Economics?


"Trickle Up economics has just scored its greatest success and it is being covered up. I wonder why. Could it be embarrassment? "

Let's see. Could it be that the "trickle effect" is bi-directional? The fallacy of "Reganomics" is that production alone grows prosperity and that accordingly business leaders should should benefit from less taxes. What this neglects is that production alone cannot create demand. Taxes must be reduced for everyone in order for the trickle effect to work. Supply and demand are affected both by producer and consumer and to leave out one part of the equation leaves one with an incomplete picture.

For anyone who is serious about learning more about economics I recommend reading the following authors:

Ludwig Von Mises, Frederic Bastiat, Murray Rothbard, Frederick A. Hayak

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