Back in the 80’s President Reagan’s economic advisers came up with this idea of trickle down economics. Essentially what was supposed to happen was lower the tax burden on companies to reinvest the extra capital in research and development. Thus companies would be able to grow, create more high paying jobs and enhance the overall health of the economy. I think we can all agree that didn’t happen. Instead companies took that money, gave it to their executives, overspent on the overall compensation of the top 1% of the company and thus decide to stop giving raises and cut costs to placate the shareholders.
I believe the trickle down concept would have worked had it been executed the way it was envisioned. But as with anything that involves money, greed left unchecked goes out of control and becomes a cancer for which the cure is worse than the disease.
Supporting Adult Children
Fast forward 30 years after the trickle down policy and the new tickle down is grandparents giving their money to their kids so those parents can in turn give money to supporting their children. I can’t tell you how many of my friends and associates are living this life today. Buying a house, purchasing a car or affording the daily maintenance of life has far outpaced what most families can possibly earn. My friends are supporting adult children who have graduated college, did well, and those kids are still having to rely on their parents to afford any resemblance of independence.
Unfortunately the story doesn’t end there. Most of the parents I know have to get money off their parents because they in turn are being held hostage to supporting adult children. When the parent’s income is used up supporting adult children, they have to turn somewhere to make up the difference in the added cost, which is usually to the grandparents. I’m sure as with anything there is a disconnect between needs and wants, however, we will give people the benefit of the doubt. The cost of college and the cost of getting to a job can take the majority of what a young adult can afford in the entry level stagnate wage world we live in.
I can only assume the majority of young adults who graduated college want to get a job, pay their own bills and are anxious to start their life. However, it would appear more and more that is a dream that is completely unattainable. It’s not cheap to live today, no matter where you are and its only getting harder by the year. Just look at the cost of a “starter” home today. How in the world is a young adult who just graduated college supposed to afford a home?
What Does the Future of Trickle Down Economics Hold
I have even read articles where the older generation today, for the first time in 100 years, does not think the younger generation will have it better. I think we can agree with that. The days of prosperity and independence are far behind us. When the cost of everything continues to rise and people work many more hours but comparatively make less, at some point that reaches a breaking point.
At some point this form of trickle down parentalnomics cannot be sustained, as people eventually run out of money. I applaud parents and grandparents who go the extra mile to help their kids get a better life, I just don’t know how it can last. Inheritances are being destroyed, retirements are being decimated, people who worked their entire lives are finding themselves having to go back to work to help fund the generations below them. The story of the middle class continues to fade into oblivion and will become a myth that future generations will hear about as stories of the good old days.
The Deviant View – Trickle Down Economics
Believe me when I tell you this will only get worse as the greed at the top intensifies and the competition for resources increases more and more. How much longer it can continue, that I don’t have an answer to. The accumulation of personal debt has allowed this cycle to continue for much longer than in the past societies that have collapsed under the weight of greed.
I am not telling anyone something they don’t already know. If you are in the middle class, to some degree you are either supporting adult children like this or know someone who is. That should be enough to prove my point. This is not middle class living. When you have to personally finance someone else’s standard of living to maintain a middle class life that is called poverty, albeit hidden extremely well.
What I meditate on is when in the Hell are people going to wake up and realize this is what is going on? Doesn’t anyone understand that in our compliance, complacency and sedentary behavior, we are in effect ruining the future generations’ ability to provide for their families? Maybe it is working today, because there is a generation or two alive that were fortunate enough to live and save some money. When that money is gone, supporting the younger generations today, it will be gone, the future generations will undoubtedly live in a state of poverty.
Is this the country and world we were entrusted to protect that we inherited from our founders and ancestors? I think it’s safe to say we are not doing a good job and owning up to our duty to provide freedom, independence and opportunity to future generations.
By King Deviant
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