Dear Editor: From FDR onward most presidential administrations operated on a simple demand-driven equation that working-class wages drove economies because working-class people spent most of their money in the marketplace producing demand for factory output goods and services.
Ronald Reagan stated that if he cut taxes on rich people and businesses, those “job creators” would use their extra money to build new factories, increasing production and economic growth. Reagan claimed the profits would “trickle down" to workers, giving increased money to buy things.
Production and economic growth did increase, but the profits remained with the wealthy, not the workers.
For working people, the tax cuts amounted to a few hundred dollars per year at the most, while those for the rich rose to hundreds of billions of dollars. The national debt rose from $800 billion to nearly $3 trillion during Reagan’s term.
The Clinton administration had to raise taxes and cut programs to reign in the debt. The next Bush administration again nearly doubled the national debt by borrowing over $1 trillion for a tax cut and two unfunded wars, adding $5 trillion to the debt.
The last administration again reduced taxes on the wealthy and corporations as Donald Trump added another $7 trillion to our indebtedness.
Let's not again be fooled by the notion that cutting taxes for the well-off will “trickle down” to the rest of us. The wealth stays at the top while the debt finds its way to us.
Send your letter to the editor to email@example.com. Include your full name, hometown and phone number. Your name and town will be published. The phone number is for verification purposes only. Please keep your letter to 250 words or less.