From: narayana@psuvax1.cs.psu.edu (Kuram T Narayana)
Subject: Re: TRICKLE-DOWN: Let us thank the conservatives!
Organization: Penn State Computer Science
Date: Tue, 24 Nov 1992 02:28:27 GMT

In article <102959@bu.edu> pankaj@bass.bu.edu (Pankaj Tyagi) writes:
>In article <By6q98.Lur@cs.psu.edu> narayana@psuvax1.cs.psu.edu (Kuram
>T Narayana) writes in reponse to article
><1992Nov23.183140.5195@news2.cis.umn.edu> by prabhak@giga.cs.umn.edu
>(Satya Prabhakar) :  
>
>>>TRICKLE-DOWN: Let us thank the conservatives!
>>>
>>> 
>   (stuff deleted....)
>>>
>>>Trickle-down.  Sure if makes the rich richer, but it will give jobs to the 
>>>poor.  But the way to see it is that it is the payoff to the enterprising 
>>>for risking their wealth and creating prosperity.
>>
>>No! it will not give jobs! It will give the mirage of jobs. It makes the
>>rich really rich; this is no mirage. It is pretty concrete.
>>
>
>I never could understand the concept of Rich getting richer and that in
>itself somehow being unfair/inhuman thing in so much as to deserve our
>condemnation. As long as the rich person has not *forced* the poor to
>part with the money by unfair means I don't see how this can be
>immoral let alone illegal(which it is not). Furthermore a rich person
>will reinvest that money back into economy and thus giving back to the
>persons he/she got the money in the first place. There is no mirage in
>that. 

Actually what it means is that in trickle down economics, the govt acts
in such a way (through its monetary and other polcies) to generate a
quick buck for the rich. Once the buck is made, the rich close the shop
and go away. The poor are left high and dry. That is the mirage of jobs.
The jobs are there but yet are not there. They are there to the duration
that the rich can make money and then they go away. The poor are left 
jobless, and the rich with their pockets full. Noop! Investment does 
not occur. It goes into buying an art treasure or a luxury yacht and 
value based items which do not generate employment to match the
jobs lost. That is the reason why it is immoral. In other words, if
the rich get richer by earning the money old fashined way, then it
is fine. If they do it by the use of a govt policy to make them get 
rich quick, then that is immoral.

>	The alternative you are suggesting, will definitely *not* make
>anybody rich. Unless of course you go about 'reinvesting in
>infrastructure' which will surely make special-interest groups rich
>:-)
>
>	I am afraid that this may start sounding like conservative
>rehetoric so I'd really like KT or someone else please explain to me
>how Trickle-down just creates a mirage of jobs and not the jobs
>themself. Incidental reasoning will do fine if there are no extraneous
>factors destorting the results.
>
>>>
>>>Trickle-down. Yo, it does your country good!
>>>
>
>Well, as for above statement, it may be true if qualified by another
>statement 
>	'provided your trade barriers are high enough'
>
>	In America there has been steady outflow of capital to
>countries with cheaper. Not only the big corporation have moved out
>but also the banks have been more free to finance projects in
>latin-america and se-asia. Trickle down did trickle, and may be it went
>ahead and benefitted the most needy people, namely the people of
>latin-america and se-asia who have had the worst living standardsfor a
>long time. May be trickle-down is just too fair as it will not
>honour political boundries if they are surmountable. I know that this
>does not neccessarily mean that working people, and hence the
>politicians are going to be happy about it. 
>	But then again if you want trickle down to work for your
>country just raise your trade barrier.
>
>------------------------------------------------------------------------------
>#include std.disclaimer| pankaj@bass.bu.edu,pankaj@pub2.bu.edu
>#if IDONTLIKEYUORQUOTE |"..I mean if I said that I'm the king just because some
>#include local.joke    | watery tart lobbed me a scimitar, they'd put me away"
>--
>#include std.disclaimer| pankaj@bass.bu.edu,pankaj@pub2.bu.edu
>#if IDONTLIKEYUORQUOTE |"..I mean if I said that I'm the king just because some
>#include local.joke    | watery tart lobbed me a scimitar, they'd put me away"
>----------------------- Quote from Monty Pythons "Quest of the Holy Grail------

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