Dec 08 2011

Trickle down theory is dead – OECD

Posted by: Nick Shaxson in: Thoughts

The Financial Times starts an article like this:

Trickle-down theory is dead. The belief fostered by Ronald Reagan in the US and Margaret Thatcher in the UK in the 1980s, that if the rich got richer their income and wealth would trickle down the income scale so that a rising tide lifted all the boats, has had the last rites pronounced on it – by the Organisation for Economic Co-operation and Development.

(Another name for trickle-down theory is ‘horseshit economics.’)

This FT article is covering the OECD’s report on inequality, which I have commented on recently, and it’s a corker. Things are really changing. We now have the OECD effectively waving a placard saying ‘Tax the Rich!” Imagine that, just a few years ago. We have Angel Gurría, OECD secretary-general, saying that “The social contract is unravelling.”

Times they are a-changing.

one comment

[…] by the Occupy movement, with Romney struggling to explain to a crown of unemployed workers the ‘trickle down’ effect.  Collateral damage has been carefully avoided, but central tenets of the Republican faith […]

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