My latest article on Medium is about a 15-minute read, titled Trickle-Down Economics Must Die, Long Live Grow-Up Economics, and subtitled "The myth of inequality-driven economic growth and how to achieve real prosperity for all."
For over thirty years we’ve treated something as fact which is actually false. Economists we trusted to know better, didn’t, and so people have suffered and continue to suffer. This pernicious economic myth is the idea that a rising yacht lifts all tides, or as more popularly described, “trickle-down economics.” If we are to start running our economy in a way we could one day describe as notably less insane, we must finally come to see it for what it actually is.
This belief that it’s good economics to give a relatively greater and greater share of the pie to the top of the economic spectrum because the absolute sizes of all remaining shares will grow, has taken some mortal hits in recent years by some major players, most notably even the OECD and IMF. In fact, it has now reached the point that the idea even being left alive at all in the minds of anyone, makes it a good candidate as an extra in The Walking Dead.
Surveying the data, we’ll start with Wall Street bonuses versus the economic multiplier effects of higher velocity money, go on to economic growth research in relation to distributional inequality, and end with what we know from global cash transfer evidence and the economic effects of billionaires. Let’s burn this undead idea of inequality-driven economic growth with napalm and bury it in concrete shall we?
To read the rest, head on over to the Basic Income collection on Medium.
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