Trickle down economics. It's not a new idea, but it's the most recent one politicians have wanted to listen to. Even the IMF has said that it doesn't work, but because the US Government is renewing it's indoctrination program on the matter, Australia must copy whatever obvious mistakes they make.
There was an article yesterday with the title Republicans don't understand: Tax cuts don't spur economic growth. It's cute that the people at NBC News think that Republicans don't understand this, but it's completely incorrect. Not only do they fully comprehend it, but there's another extremely important thing that they also understand:
If you repeat the lie often enough, it becomes the truth
This normally works, but there was a recent case in Australia where it actually failed. An Indian company called Adani wanted to build a massive coal mine in Queensland (using no small amount of public money), but they couldn't get approval.
Why Did The Lie Fail?
Adani (along with the Government of Australia) may have been able to succeed in pulling the wool over the eyes of the general public, but they couldn't fool the people who were scrutinising the deal behind the scenes - the banks.
Yes, it was the banking sector that saved Australia from a future built on the worst fossil fuel. They may be willing to embrace wilful ignorance when it comes to destroying the economic prosperity of a nation (it's coming, folks!), but they're not willing to risk the dividends paid to their shareholders.
How do I know this? Because I talk to bankers.
Does Trickle Down Become Trickle Up When You're Down Under?
That's a very deep question and one that's too profound for my brain to handle. However, Australia's Treasurer certainly thinks so as he's backing the corporate sector in their calls for lower corporate tax which they need so that they can create jobs. Perhaps they never went through the re-engineering process to fix the Y2K problem? It would explain why they're acting like it isn't 2018 if their calendars are 100 years behind.
If having more money led to more jobs, we'd all be working for the banks. The truth is that having more money leads to higher dividends for shareholders (and executive bonuses). No new jobs.
The lie needs to be repeated at least one more time to prove me wrong.
Yes- trickle up... especially when quantitative easing and stock buy backs are a thing.....
*chuckle at your humor here in the post.
And yes- of course 'they' understand it.
Here in USA.
Ah, stock buy backs. Maybe you could write a post about them and save me the trouble?
Nice post, I know if the government bails out a company again, I am going to immediately buy stock in them. I wouldn't be here if had bought GM stock after the bailout.
I think bail in's will be used next time. They've already been tested in Cyprus.
LOL. This is such a thing, even in America. It happens far too often. We just accept what we read because the ideas we read are pounded into our head and laced with emotion.
It takes true vigilance to avoid these false messaging tactics... that or just get off facebook / turn off the tv / burn the newspaper. I prefer the latter :)
Thanks for sharing @penston!
Cheers,
~ @axios
PS: I wrote about a slightly similar topic just last night. I'm sure you can find the similarities somewhere. Here it is if you're interested: True Life: My Country's Government Has Shut Down [Here's Why That Doesn't Matter]
I haven't seen today's newspaper headlines here in Sydney, but on Monday and Tuesday they were indoctrinating people into believing that the recent US tax cuts are stimulating global growth and that we're going to be left behind unless we cut corporate taxes to 25%. And that's not even Rupert Murdoch's newspapers!
This is what I heard continually in the 80s. It never trickles down. Finally those "great companies" also take a dive a generation later because they are so inflated they become worthless. Thank you Jack and all blue stock CEOs and George W. You made America what it is today.
Not just America.
True
Yep, it's like casting a spell. It's crazy what they have the balls to do these days! Thank you for bring this to light. I was unaware, but good for Australia!
Having the banks put the breaks on the Adani mine shows how the government was acting against the interests of the economy (if not the public and the environment). Unfortunately, they have a reason to side with the government on the latest lie about tax cuts resulting in job creation.
Interesting...
Trickle down into the deep pockets of the few is true I guess...
I believe in watering the soil directly, so the whole food chain can heal itself. And an economist who refuses to implement this very obvious truth is not worth the title, except perhaps amongst a deceitful den of thieves.
Now you have me thinking about soil bacteria and mycorrhizal fungi. Maybe I’ll write a post which explains the money system in terms of permaculture?
Permaculture emulates the healthy symbiosis of different species in a system of mutually beneficial eco-spaces evolved over eons...why not?
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