"Tax cuts to the rich and big corporations don't lead to more investment and jobs," Robert Reich writes. (Photo: YouTube/screenshot)
Why We Need Rise-Up Economics, Not Trickle-Down
Invest in our people—their education and skills, their health, and the roads and bridges and public transportation that connect them.
How to build the economy? Not through trickle-down economics. Tax cuts to the rich and big corporations don't lead to more investment and jobs.
The only real way to build the economy is through "rise-up" economics: Investments in our people--their education and skills, their health, and the roads and bridges and public transportation that connect them.
Trickle-down doesn't work because money is global. Corporations and the rich whose taxes are cut invest the extra money wherever around the world they can get the highest return.
Rise-up economics works because American workers are the only resources uniquely American. Their productivity is the key to our future standard of living. And that productivity depends on their education, health, and infrastructure. Just look at the evidence.
Research shows that public investments grow the economy.
A recent study by the Washington Center for Equitable Growth found, for example, that every dollar invested in universal pre-kindergarten delivers $8.90 in benefits to society in the form of more productive adults.
Similarly, healthier children become more productive adults. Children who became eligible for Medicaid due to expansions in the 1980s and 1990s were more likely to attend college than similar children who did not become eligible.
Investments in infrastructure--highways, bridges, and public transportation--also grow the economy. It's been estimated that every $1 invested in infrastructure generates at least $1.60 in benefits to society. Some research puts the return much higher.
In the three decades following World War II, we made huge investments in education, health, and infrastructure. The result was rising median incomes.
Since then, public investments have lagged, and median incomes have stagnated.
Meanwhile, Ronald Reagan and George W. Bush's tax cuts on the top didn't raise incomes, and neither will Donald Trump's.
Trickle-down economics is a hoax. But it's a convenient hoax designed to enrich the moneyed interests. Rise-up economics is the real deal. But we must fight for it.
We are at a crossroads
This country and this world are at a monumental crossroads. In a few short weeks, US voters will have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. Our Fall Campaign is underway, and we need your help. To power our newsroom through the rest of the year, we need to raise $125,000 by midnight on October 31. So if you share our vision, please contribute whatever you can to sustain our work. |
How to build the economy? Not through trickle-down economics. Tax cuts to the rich and big corporations don't lead to more investment and jobs.
The only real way to build the economy is through "rise-up" economics: Investments in our people--their education and skills, their health, and the roads and bridges and public transportation that connect them.
Trickle-down doesn't work because money is global. Corporations and the rich whose taxes are cut invest the extra money wherever around the world they can get the highest return.
Rise-up economics works because American workers are the only resources uniquely American. Their productivity is the key to our future standard of living. And that productivity depends on their education, health, and infrastructure. Just look at the evidence.
Research shows that public investments grow the economy.
A recent study by the Washington Center for Equitable Growth found, for example, that every dollar invested in universal pre-kindergarten delivers $8.90 in benefits to society in the form of more productive adults.
Similarly, healthier children become more productive adults. Children who became eligible for Medicaid due to expansions in the 1980s and 1990s were more likely to attend college than similar children who did not become eligible.
Investments in infrastructure--highways, bridges, and public transportation--also grow the economy. It's been estimated that every $1 invested in infrastructure generates at least $1.60 in benefits to society. Some research puts the return much higher.
In the three decades following World War II, we made huge investments in education, health, and infrastructure. The result was rising median incomes.
Since then, public investments have lagged, and median incomes have stagnated.
Meanwhile, Ronald Reagan and George W. Bush's tax cuts on the top didn't raise incomes, and neither will Donald Trump's.
Trickle-down economics is a hoax. But it's a convenient hoax designed to enrich the moneyed interests. Rise-up economics is the real deal. But we must fight for it.
How to build the economy? Not through trickle-down economics. Tax cuts to the rich and big corporations don't lead to more investment and jobs.
The only real way to build the economy is through "rise-up" economics: Investments in our people--their education and skills, their health, and the roads and bridges and public transportation that connect them.
Trickle-down doesn't work because money is global. Corporations and the rich whose taxes are cut invest the extra money wherever around the world they can get the highest return.
Rise-up economics works because American workers are the only resources uniquely American. Their productivity is the key to our future standard of living. And that productivity depends on their education, health, and infrastructure. Just look at the evidence.
Research shows that public investments grow the economy.
A recent study by the Washington Center for Equitable Growth found, for example, that every dollar invested in universal pre-kindergarten delivers $8.90 in benefits to society in the form of more productive adults.
Similarly, healthier children become more productive adults. Children who became eligible for Medicaid due to expansions in the 1980s and 1990s were more likely to attend college than similar children who did not become eligible.
Investments in infrastructure--highways, bridges, and public transportation--also grow the economy. It's been estimated that every $1 invested in infrastructure generates at least $1.60 in benefits to society. Some research puts the return much higher.
In the three decades following World War II, we made huge investments in education, health, and infrastructure. The result was rising median incomes.
Since then, public investments have lagged, and median incomes have stagnated.
Meanwhile, Ronald Reagan and George W. Bush's tax cuts on the top didn't raise incomes, and neither will Donald Trump's.
Trickle-down economics is a hoax. But it's a convenient hoax designed to enrich the moneyed interests. Rise-up economics is the real deal. But we must fight for it.