With all due respect to columnist Adrian MacNair, his economist are into trickle down economics, or what was once dubbed Reaganomics.
The problem with this old boys philosophy is that it’s not just old boys and their companies anymore. It’s stock holders and board rooms. It’s all share prices and dividends.
Let’s see how trickle down economies are doing. The birthplace was California, and Ronald Reagan was the governor. They are currently bankrupt as a state.
Didn’t his economic policies get him into the White House? And where’s the U.S. economy right now? Trillions in debt. Unemployment at its highest in decades.
I love McNair’s comments that a broad-based consumption tax benefits us by curtailing inflation and stabilizing prices. He is really saying that no one can afford to buy anymore, so they stop, and companies have to stop increasing prices.
Bottom line, us worker bees have less. It’s that pendulum thing. Reducing taxes on corporations and businesses may have helped to create jobs once upon a time, but now the jobs created are so low paying that they can’t sustain the economy, so companies are forced to cut back. People earning less are filling the government coffers less. Businesses are contributing to the government coffers less.
Now governments are downloading from federal to provincial to municipal. Our property taxes are skyrocketing, our services are eroding or going metered, costing us more. Our provincial and federal services are eroding and going more user-pay.