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Trusted local news leader for Prescott area communities since 1882
11:22 AM Mon, Nov. 19th

Letter: Trickle-down

EDITOR:

Ron Woerner, like Douglas Iverson, and others make the erroneous statement that the "trickle-down" theory is a failure without any explanation. Let's take a look at where the money comes from to fuel our economy in creating jobs and new products.

Until the early 80s, most of the investment monies came from single investors. Since then, a majority of the investment monies came from the 401Ks. The single investors and those with 401Ks are those in the upper middle and higher incomes. The people in the lower incomes have very little capital left of their living expenses to invest. Hence, the monies to fuel our economy does indeed "trickle-down." The lower income levels have nothing to "trickle-up." It is investments that provide capital to corporations that create jobs and new products.

Obama demonstrated that even the threat to raise taxes resulted in a tax revenue reduction of 20 percent for his first year in office. Three presidents have already demonstrated that tax cuts fuel the economy. Obama is still threatening to increase taxes on the rich, capital gains and corporations. This continues to hold investments down and has created large unemployment, about 15 percent.

In a capitalist system, the increase in technology will always widen the income levels of the various education levels. Those with the greater intellect, ambition and knowledge have an advantage for income acquisition over those with lesser levels of education.

The greatest threat to America future is not what R. Woerner claims, but the acceptance of socialist policies in an attempt to "equalize" income for everyone. America has demonstrated to the rest of the world that capitalism with the rule of law under our Constitution produces the highest living conditions for those willing to work and become self reliant.

Jerry Fowler

Prescott