I finally understand the trickle down effect. A friend of mine explained it to me in terms that I think anyone can understand.
He started our conversation with this statement: MIDDLE CLASS AMERICANS CAN NOT MAKE A LIVING WORKING FOR MIDDLE CLASS AMERICANS. They have to work for wealthy folks.
That stunned me. Let me explain what he told me. He said that he worked for a wealthy family that does not even live here. They only have a summer family estate here. On that estate, they have 4 houses, several barns, several outbuildings, a caretakers house, and on and on. They employ a caretaker to look after their estate. They employ a landscaping company to mow and to take care of their large tract of land. They employ a cleaning crew to clean all of their homes. They employ electricians, plumbers, carpenters, painters, roofers, security services, generator technicians, well diggers; septic tank contractors……Are you starting to understand?
They buy electricity, food, clothing, furniture, TV services. They eat in restaurants, visit tourist attractions, play golf, go to ball games, send their kids to camp, attend church, donate to charities, etc. Recently, they have remodeled a house. They bought products from construction supply companies, paint stores, lumber supply stores, lighting supply stores, and nurseries.
Do you notice the key words here? The key words are EMPLOY and BUY. They do all this and do not even live here! Do you get it yet? Look how many middle class Americans this “wealthy family” keeps working.
This is not unusual. Most middle class Americans cannot strive to make a good living and possibly move up in monetary status unless they have someone to work for. Not everyone can be supported by the Government.
Even if the wealthy were hoarders of their wealth, (though studies show they are extremely generous), their money is better suited in bank accounts than the hands of the government. When the middle class goes to a bank to buy their first home, where does the bank get money to loan them? From the wealthy’s savings account. Want to open your own business? That business loan from your local bank came from the money sitting in the accounts of the wealthy. Their wealth helps set you on your own way to financial stability, whether it is being a homeowner or entrepreneur.
If the government takes that money through taxation, instead of allowing it to work in the marketplace, it is spent quickly through trillion-dollar deficits each year. The wealthy’s money circulating in the economy is a much greater force for the average middle class family than it is in the government coffers.
The fundamental difference is government though. Is the money better off in a bureaucracy, or in the hands of the American people? The wealthy employ, buy, donate, and keep money available so that everyone can achieve. Isn’t that the goal, the opportunity for all achievement? Everyone should have the opportunity to reach their goals and not be penalized for doing so.
Wealthy people are not evil Americans. In most cases they have worked hard for what they have. Sure, they have had a few breaks go their way. The United States has to do whatever it takes to get the wealthy folks to start spending money again. We must put Middle Class America back to work, whatever it takes. And this is what it takes. Taking money away from them and giving it to the government to waste is idiotic.