After reading an article in the New York times this morning, I pondered the question, "Can the economy flourish if the rich are becoming poorer?". Most of you are well aware that my political views slant more to the right as a fiscal conservative. I am a "supply sider" at heart.
Notice the chart above. Immediately, I thought of Reagan's controversial trickle down economics theory can only hold true if the top wage earners and the top wealth creators continue to become more wealthy. Moreover, without wealth creation at the top, money will dry up down river like the Colorado flowing to the gulf of California. (Hence it dries up before it ever reaches the people who need water the most). This becomes more evident in the current business cycle. Unemployment is higher than its been in 30 years and real wages are considerably lower. The "proof is in the pudding"
This begs the question. Can the US economy flourish if the top wage earners and accumulators of wealth STOP becoming more wealthy? Study France, Italy and Germany's economic climate since WW2, and there lies the answer.
Have a great weekend!
