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Started By
Message
re: Trickle Down Economics Explained
Posted on 5/26/17 at 9:40 am to N.O. via West-Cal
Posted on 5/26/17 at 9:40 am to N.O. via West-Cal
quote:
This is the baseline fallacy of far too many. Aside from criminality or crony capitalism/abuses in connection with government contracts, someone else getting reach is at worst neutral and often mildly beneficial to society at large. This does not necessarily mean that any particular marginal tax rate has been set by God above, but it's a reminder that free market economics is NOT a zero-sum game. Sure, there is competition but more often than not, both sides of a transaction are better off.
Otherwise neither side would willingly enter in to the transaction.
There are many goods and services I have wished to own over the years. I kept them on my wish list and never bought them for a couple reasons.
The main reason was I felt they were too expensive for me to buy.
Funny thing happened though. As time went on not only did the products become cheaper but they were better than the original ones I had my eye on for years.
Another thing happened along the way. As my skills grew I was able to get better paying work which put some of those dream items I wanted in the disposable income range for me.
That is just how basic economics works. To deny it is foolishness or just plain ignorance.
1
Posted on 5/26/17 at 10:11 am to Loserman
The biggest problem with wealth pooling are the laws surrounding patents, copyrights, and litigation suits/tortious law.
Right now, we live in a world of organized soft-monopolies and regional/sector monopolies.
Take the iPhone for example. Costs $30 to manufacture, but is sold for $750. So Apple is worth like $500 billion. Samsung is the competition only because they need the optics so nobody cracks on them as a monopoly.
No small company can manufacture an iPhone composite or Apple will sue them out of existence.
So there's no REAL competition happening. As a result, Apple gets to charge $750 for something that costs $30 and people pay it and Apple continues pooling insane wealth.
THIS is why Trickle Down Economics gets a bad rap. Because other aspects of the system allow wealthy companies to control competition.
We need patent, copyright, and tort reform to fix this.
Make patents and copyrights have a time limit based on the product or service sector and type of company. Then make the qualifications to sue a business for property and idea rights damn near impossible.
So Apple gets a year of exclusivity with their iPhone8, but after 12 months, any other company can produce that exact same phone. And Apple can't stop them or do squat about it.
No way could they sell the thing for $750. Most people would just wait the year and buy it for $200 from another supplier. There would be dozens of companies manufacturing them and truly competing for market share.
As a result, wealth pooling would come to an end. More companies and business owners would have more money. The uber wealthy would have significantly less. Job choice and availability would go through the roof.
This is how Capitalism and Trickle Down was meant to work. True competition combined with top-down supply-side economics.
Right now, we live in a world of organized soft-monopolies and regional/sector monopolies.
Take the iPhone for example. Costs $30 to manufacture, but is sold for $750. So Apple is worth like $500 billion. Samsung is the competition only because they need the optics so nobody cracks on them as a monopoly.
No small company can manufacture an iPhone composite or Apple will sue them out of existence.
So there's no REAL competition happening. As a result, Apple gets to charge $750 for something that costs $30 and people pay it and Apple continues pooling insane wealth.
THIS is why Trickle Down Economics gets a bad rap. Because other aspects of the system allow wealthy companies to control competition.
We need patent, copyright, and tort reform to fix this.
Make patents and copyrights have a time limit based on the product or service sector and type of company. Then make the qualifications to sue a business for property and idea rights damn near impossible.
So Apple gets a year of exclusivity with their iPhone8, but after 12 months, any other company can produce that exact same phone. And Apple can't stop them or do squat about it.
No way could they sell the thing for $750. Most people would just wait the year and buy it for $200 from another supplier. There would be dozens of companies manufacturing them and truly competing for market share.
As a result, wealth pooling would come to an end. More companies and business owners would have more money. The uber wealthy would have significantly less. Job choice and availability would go through the roof.
This is how Capitalism and Trickle Down was meant to work. True competition combined with top-down supply-side economics.
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