‘Trickle Down’ Folly : Cutting Taxes Doesn’t Create Jobs

How NOT to create jobs:  Cut business taxes and lower wages?

Money does not trickle down in a capitalist economy — it flows upward, and that has always been true.

For years now, the corporate-owned Republicans have been telling us that the way to create more jobs in America is to cut business and corporate taxes and lower wages for workers. They would like to do away with the minimum wage completely, which would put downward pressure on all wages (except for corporate executives).

Even President Obama has recently jumped on this dubious bandwagon by recommending business tax cuts as a part of his jobs creation program. On the surface, this sounds like it might work. After all, if business owners got to keep more money from reduced taxes, they would be able to afford to hire more workers — right?

The real question is whether a businessman being able to afford more workers would actually translate into that businessman hiring more workers. I submit it would not. Answer this question — is a person in business to create new jobs or to make as much profit as possible?

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