This graph DARES to suggest that “trickle-down” doesn’t work!

Profits, Wages and the Stock Market

Ronald Reagan was an advocate of trickle-down economics. Ronald Reagan was perfect in every way. Therefore, this graph is wrong.  That’s just logic.

For those of you who don’t know, “trickle-down economics” is the very sensible conservative view that the most important thing in the economy is rich people.  When rich people do well, they buy stuff that you make and hire you to fix their boats and airplanes and take away their garbage.  In other words, everyone is happy, because you should thankful to even be employed at all, you lazy bum.

Ronald Reagen did not invent trickle-down economics. In fact, as a theory it has been around since at least the 1890’s, when it was called the “horse and sparrow theory” of economics. The idea is that if you feed a horse enough oats, it will eventually shit them out onto the road, and then the sparrows will be able to eat the oats from the road.

The Reagan administration wisely decided to use the term “supply-side economics”. It is basically the same concept.  However, they rarely, if ever, mentioned sparrows eating horse shit in their economic discussions.

At any rate, the point is that when rich people are better off, they make everyone better off. When the horse eats more oats, the sparrows get more oats. That’s a core bedrock principle of conservative economics.

Yet somehow, inexplicably, the above graph seems to indicate otherwise.  In this graph, you can see that the horses have been eating more and more oats over the last four years: corporate profits and stock value are going up and up and up.  Yet somehow, the sparrows are not getting more oats: the earnings of workers are staying about the same.

Where are your oats, Liberal Graph?

As conservatives, we take as axiomatic that trickle-down theory must be correct; therefore, the only possible conclusion is that this graph is just wrong.

Yet another case of numbers and statistics having liberal bias!!!


graph data source: Federal Reserve Bank of St. Louis
graph found via: The Huffington Post

4 Replies to “This graph DARES to suggest that “trickle-down” doesn’t work!”

  1. Note that ARRA was passed in February 2009. The stock market performed a near 180 within about two weeks of ARRA passing.

  2. The sarcasm and innuendo of the text here is confusing and to me at first, totally misleading. I think this is a liberal report presenting facts graphically, to demonstrate the fallacy of trickle-down economic theory. Then, it’s ‘set up’ as a conservative response to the facts, which immediately goes into denial of the facts. But jeez, I’m a bright guy and I spent 10 minutes trying to figure out where it was sarcastic and where it was on the level. Is that useful? BTW, I’m a liberal and do not believe in trickle-down or supply-side theory.


  3. Here’s an opportunity to turn the whole “makers vs. takers” rhetoric on its head.

    The working folks are producing goods: they are the makers.
    The investors are getting all the spoils: they are the takers.

    Its time to reward the makers.

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