Wednesday, May 23

Could it be that trickle-down really works?

As a recovering Liberal, (now founder of the Cynical Center(TM)), I hate to countenance trickle-down. I was against trickle-down in my youth (but what did I know?). But here's a comment I made over at Tom's that thumbnails my current thinking on the subject:

one legitimate concern about the growth of the gap between the rich and the poor is: what are we doing to help the poor? they're the ones who are in the harder spot.

it's tempting to think we can help them by re-distributing through taxes. it's tempting to think we can help them through welfare. it's tempting to think, internationally, that we can help through ODA. but those methods have been tried and found wanting. as much as i'd rather help the poor more dramatically and more directly, capitalism and trickle down appear to work the best with the least bad side-effects.

kind of like what Churchill said about Democracy: the worst, except for every other way...

What's your opinion? Does trickle-down work? Is there a better way to help poor people than trying to create wealth and help the economy expand in a way where the rich do in fact get richer?

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