Friday, May 31, 2024
Felon? Trump is in good company
Criminal Convictions and the Presidency
Sunday, May 26, 2024
The existential horror of Sonia Sotomayor’s life on a conservative court
Obama never kept his word on warrantless wiretaps
Wednesday, May 22, 2024
The Wall Street Journal Digital Replica Article
thevanx@gmail.com sent you this article.
Comment:

You Say 'Trickle Down' as if It's a Bad Thing By Steven E. Rhoads President Biden in his State of the Union ad --dress encouraged Americans to imagine a future in which "the days of trickledown economics are over" and the economy is built "from the middle out and the bottom up." That expression, "middle-out" economics, has bounced around Democratic politics for at least a decade. But how would it work? No one says. Politicians may scorn the trickle-down effect, but it is responsible for Americans' economic well-being. Even some prominent 20th-century liberal economists, including Paul Samuelson and Alfred Kahn, agreed that the innovation and investment that lead to capital formation are crucial to economic growth. Kahn once wrote: "The most powerful engine of productivity advance is technological progress, generated in large measure by expenditures on research and development and embodied in improved capital goods and managerial techniques." That process confers benefits on everyone, he added, "precisely by trickling down." When employees use better equipment and have better managers, they become more productive. This makes them more valuable to their companies and stirs competition in the labor market, causing their real incomes to rise. Sen. Elizabeth Warren (D., Mass.) sees the world differently. During her 2020 presidential campaign, she said the wealth tax she wanted to impose on billionaires would have no important cost to society. In her view, the tax would be reserved for "the diamonds, the yachts and the Rembrandts." Ms. Warren ignored an important point. It's the superrich who have the greatest ability to save and invest in businesses. For his 2019 book, "The Billion Dollar Secret," entrepreneur Rafael Badziag interviewed 21 self-made billionaires. He found that they generally derived more pleasure from investing in technologies to create new and improved products—a benefit to everyone—than from spending on personal luxuries. A good example is the smartphone. Wealthy Americans were among the first buyers of and investors in the product when it was a new technology. In time, costs dropped and smartphones became ubiquitous. Lower taxes for the rich spur investment, which is good for people of all classes. Politicians and the press mislead voters and readers when they claim that tax cuts for the rich don't benefit other economic classes. We all gain from new, improved products made possible by innovative startups funded by the wealthy. Excessive taxation, doubtless a feature of a "middle-out" plan, could deplete the funds that entrepreneurs use to start and sustain useful ventures. Americans shouldn't worry so much about wealth distribution. Instead, we should be grateful for how the wealthy enable entrepreneurial ideas to come to life, allowing everyone to prosper. Mr. Rhoads is a professor emeritus of politics at the University of Virginia. |
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Sunday, May 19, 2024
Bidenflation clocks in at 19.1% since Joe Biden took office
Saturday, May 18, 2024
Friday, May 17, 2024
WSJ.com: A Hunter Biden Debate, Finally
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Thursday, May 16, 2024
44,000-lb. wind turbine blade busts loose while in operation and careens to the earth—media wonders if the industry has a ‘quality’ problem
Wednesday, May 15, 2024
Timothy Van Eck invites you to read the WSJ article: Flood of Fake Science Forces Multiple Journal Closures
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Saturday, May 11, 2024
WSJ.com: What You Aren’t Hearing About Marijuana’s Health Effects
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Friday, May 10, 2024
[Shared Post] Biden tells a lie a minute during CNN interview
Tuesday, May 7, 2024
Bernie Sanders wants to raise your prescription costs
Monday, May 6, 2024
Ric Grenell exposes Jack Smith as the king of sleaze
Saturday, May 4, 2024
WSJ.com: The Adults Are Still in Charge at the University of Florida
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Timothy Van Eck invites you to read the WSJ article: Activist Groups Trained Students for Months Before Campus Protests
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Wednesday, May 1, 2024
Here are all the times Joe Biden has been accused of acting inappropriately toward women and girls
https://www.businessinsider.com/joe-biden-allegations-women-2020-campaign-2019-6