Donald Trump has been very sketchy about giving any substantive policy information. But we do know that he has patterned his economic ideas after those of Reagan. And based on the past 40 years, we also know that his economic plan will absolutely not work.
Donald Trump’s economic plan is based on the “trickle-down” theory which basically claims that giving massive tax breaks to the richest Americans will create a trickle down effect and increase jobs and wealth for the working class and poor. The problem with Trump’s plan is that the whole theory is bullshit.
One great example of this failed policy is Kansas.
Governor Sam Brownback, along with his neoCon legislature, pushed through a series of massive tax cuts which effectively drove great deals of money to Kansas’ top 1%. They also cut corporate regulations and did every kind of trickle down trick they could think of and get away with. They did all of this believing they would create more jobs and stimulate the economy.
But last week Eric Zorn from the Chicago Tribune found that Kansans were so disgusted with Brownback’s failed plan that he now holds the honor of being the least popular governor in the entire country.
“The Congressional Joint Economic Committee reported earlier this year that Kansas had just 9,400 new private-sector jobs in 2015 (out of 2.6 million nationwide). U.S. Department of Commerce data show that, prior to Brownback’s tax cuts, Kansas ranked 12th in the nation in personal income growth; after the tax cuts it fell to 41st.”
“A handful of school districts in the state had to close early last year for lack of funds, and the state Supreme Court has had to issue orders requiring Kansas to cough up enough money to pay for K-12 education.”
“In March, Brownback cut $17 million in funding, 3 percent, from the state’s six public universities in response to revenue shortfalls. In April, he announced that he was going to have to delay a $93 million contribution to the state pension fund, prompting Moody’s Investors Services to downgrade Kansas’ outlook from stable to negative.”
The thing that is truly baffling is that Trump and the Conservatives still hold on to these old ideas of Reaganomics when we can plainly see from the past 40 years that it just doesn’t work. Cutting the top tax rate does not lead to economic growth or income growth. We’ve also learned definitively that cutting the top tax rate does not lead to wage increases or job creation.
Donald Trump also doesn’t want to raise the minimum wage. He believes raising it would harm the economy. And again he’s wrong.
As a matter of fact, not only would raising the minimum wage boost the economy because the working class would have more money which they in turn would spend and put back in the system, but also according to a new report – raising the minimum wage would also reduce crime.
“Higher wages for low-skilled workers reduce both property and violent crime, as well as crime among adolescents,” the authors write. “The impact of wages on crime is substantial … a 10 percent increase in wages for non-college educated men results in approximately a 10 to 20 percent reduction in crime rates.” More concretely, the Council calculates that raising the minimum wage to $12 by 2020 “would result in a 3 to 5 percent crime decrease (250,000 to 510,000 crimes) and a societal benefit of $8 to $17 billion dollars.”
The fact is Donald Trump’s economic plan would be an absolute disaster for this country. His ideas are the exact opposite of what we know will work.
Our economy grows when wealth comes from the middle class…not from the top down. And when the working class makes more money they spend more money and they create more jobs. When the wealthiest Americans get huge tax breaks the only thing that happens is that the rich get richer.