Everyone’s heard of the old Reagan-era trickle-down economics chestnut called “job creator”. According to David Stockman, and with the enthusiastic support of the newly-elected Right in power in Washington in 1981, the key to creating new jobs was to ensure greater economic inequality in America by lowering taxes on the rich, and spendspendspend.
In recent years Stockman has repudiated his advocacy for trickle-down (or “supply-side economics”, as he used to describe it).
Other capitalists have done the same, including such entrepreneurs as Nick Hanauer. Here’s what he had to say in a recent TED talk:
“Here’s an idea worth spreading: In a capitalist economy the true job creators are middle-class consumers, and taxing the rich to make investments, to make the middle class grow and thrive is the single shrewdest thing we can do for the middle class, for the poor, and for the rich.”
The real clue that Hanauer knew whereof he spoke was that TED management did not put the talk online until there was an uproar about the exclusion. (It’s no longer posted, BTW.)
(I’ve talked about this talk before, but it’s well worth a repeat.)