A rising tide lifts all boats. This is a phrase originally used by JFK in the 1960’s and it still rings true today. Through the years the phrase has been distorted by conservatives to justify trickle-down economics. You make things “almost free” (as the salesman on a Mexican beach may say of his wares) for the top 5% of wealth holders in America and they will be so touched by the generosity of the nation as to be inspired to make that money rain down on the nation in the form of jobs and abundant prosperity for all. –Amen.
Well things have been trickling down for the last twenty years but it hasn’t been prosperity. It seems to be a mechanical problem. I propose the trickle up theory of economics. It seems after reflection that America would have been better off giving a check of $500,000 to every American rather than giving it to the banks. The banks who by the way still sit on lending money. True many institutions given TARP money have paid it back. However, the lending to stimulate the economy didn’t happen.
What happened was record profits and bonuses. Well good for them. However, it still doesn’t solve the problem. So here’s the thing I am thinking about Wall St. vs. Main St. Wall St. can invest anywhere and they have. They create derivatives and hedge funds to protect their portfolios. Again fantastic for them. They know how to make money and they have the resources to do it. I feel no need to punish them for being good at what they do.
At the same time Main St. who isn’t going anywhere is being fiscally starved of capital. If America were a business Main St. would be our regular customers. They aren’t going anywhere else, they couldn’t if they wanted to at this point. They spend their money locally and it circulates locally, nationally and internationally to manufacturers and customer service centers abroad. Where Wall St. is the spleen and marrow creating and storing the blood of the economy, money. Where government is the veins, arteries and capillaries guiding the flow. Main St. is the heart, keeping things pumping and when the heart isn’t pumping the whole system dies.
“Rising tide lifts all boats”. ~John F. Kennedy
What good is having things to sell if there is no confident consumer to purchase it? The cycle of the economy needs to be complete to work. Main St. doesn’t have the resources that Wall St. has and the people of Wall St. used to understand the important part it played for the nation. I think Wall St .has lost it’s way. When did it become so “Me” and so not “We” where did the patriotism go? And if it is gone forever then the whole dynamic must shift to reflect that. To see Wall St. in an expatriate status.
Main St. isn’t going anywhere. It is the nation. When Main St. does well, everyone does well. It is time that public policy more accurately reflect this reality. The nation has tried the “voodoo economics” of the trickle down theory for a few decades now and it is a failed experiment. I say we put more money in middle-class pockets and they will distribute the money in a very capitalistic way. Rising tide lifts all boats. Grow the tax-base and the rest of these problems will take care of themselves.