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https://freedium.cfd/https://aninjusticemag.com/why-increasing-income-inequality-is-tearing-america-apart-fe2f4d735474>
"Between 2016 and 2019 the total share of income going to the richest Americans
increased by 17 percent. That statistic shows Donald Trump's first attempt to
'Make America Great Again' focused on tax breaks for the rich. If making
America great again involves a dramatic increase in inequality, then Trump's
presidency was a resounding success. There's just a slight issue with this
vision of a 'great America' increasing inequality is tearing the country apart.
The Trump administration is by no means the first that has sought reforms to
cut taxes for the richest. Such policies have been in vogue since Ronald Reagan
came to power in 1980 lionising the powers of free markets through a certain
ideology — neoliberalism.
At the heart of neoliberalism lies an assumption —
markets are good and will
produce efficient and fair social outcomes. That's if they are left alone by
the Government, which is bad and produces inefficient and unfair social
outcomes.
To put it another way, neoliberalism unleashes the individual from the
'shackles' of government regulation. Work hard, show resilience, be persistent,
and the market will reward you fairly.
This assumption is important as it creates the justification for reducing taxes
on the rich. The idea centres on the trickle-down effect.
When you reduce taxes on the richest and largest companies it has two effects.
On one hand, it reduces government revenue, meaning the government has less
money to spend, and thus fewer opportunities to meddle in society.
On the other hand, it increases the wealth of individuals. Now, that wealth
isn't used for them to live in decadent splendour. No, no, no. The idea is that
they'll channel tax savings back into the market through wise investments. Such
investments from the people who know the business of business will help to
stimulate the economy and ultimately lead to economic growth.
A growing economy leads to increasing incomes — hence the idea of a
'trickle-down effect'.
Tax cuts for the rich are good for everyone then,
because if people have more money in their pockets, they'll be happier as they
can consume more — that is another assumption conventional economics makes,
anyway."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
