Trickle Down Vs. Trickle Up Economics
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We are hearing a lot about the economy and what works and what doesn't.
Why all of this talk about small business?
What is a small business?
Here is the Small Business Administration's definition. You might be surprised to find that you actually work for a small business; Generally 100 to 1500 employees, $2.5 million to $15 million in revenues.
Here are some facts from the Small Business Administration (SBA):
Small Businesses:
- Represent 99.7 percent of all employers.
- Employ half of all private sector employs.
- Pay 44% of total U.S. private payroll.
- Generated 65 percent of net new jobs in the past 17 years.
- Hire 43 Percent of high tech workers.
These businesses power the economy.
In the Bush era, trickle-down economics failed principally due to unbridled greed in the financial sector, a failure of the Bush administration to properly regulate banks and Wall Street and to heed the warning signs that the economy was approaching a tipping point.
In the Obama administration, trickle up economics have failed to revive the economy principally due to poor execution and an over emphasis on socioeconomic welfare, i.e., the Obama Health Care Plan.
Continuing to borrow money to inject into the lower level of the economy has not worked. Stimulus money misapplied and mismanaged and weak economic policies have created an anemic growth rate that cannot sustain the national debt or the economy for much longer.
President Obama wants to stay the course, continue to develop stimulus packages, grow the government and expand the welfare state. All requiring a bigger government, more debt and more taxes.
There is no Obama plan to scale back government and reduce the national debt.
Obama wants small business to grow but with little help, less money, less opportunity and less reward for more risk.
Romney has not embraced the Bush approach, he has not fully embraced the Regan approach. He is proposing a new way to look at our economy.
The Romney economic plan would refine regulation, reduce taxes, spending and government programs and get the rising national debt under control.
Romney would develop economic stability, move more resources and decision making power to the states, increase domestic energy production, and yes hold steady or reduce taxes on the top earners and savers to encourage investment, business growth and expansion especially in the area of small business.
If you want to work, have a career and an opportunity for success you must vote in this election.
If you own or work for a small business you should be extra sure to vote in this election. It is your future most at risk.
Forget political parties, forget how mom and dad vote, you should look carefully at both candidates and make a decision that is in your best interest.
The choice is very clear.
e-mail doc at dr.webb@verizon.net or send me a Facebook Friend request.
Red
8:53 am on Wednesday, August 8, 2012
I think most folks a very very tired of being "trickled on " by the types that have been dragging their feet the last four years. The tea drageres-uaa-bagers showed the nation their true voracious hate-filled feelings the day the pres.was sworn in. The best that can be done is to elect a congress that will support him and his polices during his next term. Consider the mess that Mr.Obama took on is it right to go back to the ideas that got us here? It took Bush 8years to drag our country down and now the same people say after three years "Gee it's (the economy) not fixed yet --- all after not passing one pece of legislation that Mr. Obama has purposed not one judge, some major positions in the administration have also been blocked. Major jobs bills blocked or killed . It's not called the do-nothing congress for nothing! Give the country a chance , give this man a REAL chance.
Scott Bitterli
3:44 pm on Wednesday, August 8, 2012
Your analysis is rediculously simplified and your prediction of what a "Romney Economy" would look, like has no base in facts. Are you a sooth sayer now?
I don't support either candidate or party. I think the only way to develope a sane government is to increase the number of parties. This 2 party charade need to end NOW!
Jon Crawfurd
4:12 pm on Wednesday, August 8, 2012
Using the complements to your numbers, we get the following:
Big Businesses:
- Represent 00.3 percent of all employers.
- Employ half of all private sector employs.
- Pay 36% of total U.S. private payroll.
- Generated 35 percent of net new jobs in the past 17 years.
- Hire 57 Percent of high tech workers.
These businesses control the economy.
The right-right economic policies of big business conservatives have created an economy where .03% of all business control roughly 50% of commercial activity in our economy. Do we want more of the same? … I think not! Especially when it’s shown that the Rmoney economic plan will make it even harder for the middle class to get an even break.
As for the President’s plan: is it a bad thing to try and stop more jobs from going off-shore? … is it a bad thing to give economic incentives to businesses that create jobs? … is it a bad thing to control the excesses of the economic sector? … is it a bad thing to make the first critical steps in controlling health care costs? … is it a bad thing to invest in infrastructure? … is fairness in taxation a bad thing?
Votes are critical. And voters should be very critical of those with vested interests in same old economic game that leave the wealthy with even more of the economic pie.
Lynda
11:39 pm on Wednesday, August 8, 2012
Just a correction, Doc. The size of government has actually decreased at the federal level during President Obama's first term from the bloated "I hire my friends" of the second Bush administration. And you will note that the unemployment statistics routinely note the loss of state and local government jobs due to the failure of the GOP house to pass any JOBS bills supporting the employment of teachers, police or fire fighters by the states and cities. The loss of government jobs at all levels has hurt women and minority employees the most because of the equal opportunity provided in government employment. Your cheerleading of the Romney plan (who knew there was one with details the CBO could evaluate!) is also inaccurate. Wishful thinking on a good conservative's part, I am sure, but not based on anything economists can support. Sorry. You are backing the wrong economic horse in this race. By the way, how is that 1400+ S&P working out for you?
Bulldog
7:53 am on Thursday, August 9, 2012
Yes the choice is clear; Obama all the way....