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trickle-down economics
We the People Face the Abandonment of America's Foundational Principles
Are we ready to defend our ideals, or have we lost interest in distinguishing virtue from vice and public good from private greed?
Feb 05, 2025
Misattributed quotes and next-level gaslighting aside, we find ourselves yet again at a crossroads in time—a moment demanding serious reflection on the foundational principles that shaped our republic. This is not hyperbole.
For far too many years, most of what we have been willing to believe contradicts the ideals of the figures said to be revered by those we have entrusted with our government.
As to misattributed quotes, we could jump right in with Thomas Jefferson's actual words regarding our shared principles, but let's first reflect on the insights of his revolutionary compatriot turned bitter political rival, John Adams. In a letter dated April 16, 1776—less than three months before the signing of the Declaration of Independence—Adams shared this wisdom:
Public Virtue cannot exist in a Nation without private, and public Virtue is the only Foundation of Republics.
Now, recognizing that those working to recreate our nation—in their own oh-so-very perfect image—may not favor the Federalist Adams, our indispensable second president, let us fast forward some 140 years to Theodore Roosevelt. "Teddy" Roosevelt, a man well-versed in the ideas of our Founding Fathers and our foundational principles, had this to say in a letter dated January 1917:
Americanism means the virtues of courage, honor, justice, truth, sincerity, and hardihood—the virtues that made America. The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety first instead of duty first, the love of soft living and the get-rich-quick theory of life.
The focus on virtue as the foundation of national character contrasts sharply with the narrative we have been fed by those who, in reality, promote "the things that will destroy America." God only knows why we, the people, have been so accepting of their manipulative tactics instead of insisting upon promoting "the virtues that made America." Regardless, we have once again set ourselves up to watch as policies that overwhelmingly benefit a growing cadre of super-rich are implemented.
Yes, they will fuel their economic fire sufficiently so that some of us will enjoy a few crumbs. But regardless of their justifications, the harsh realities facing the shrinking middle class and the most vulnerable will be disregarded. They'll tell us that our best way forward is to be dragged down some technological path by today's Monied Interests, feeding us an amped-up version of the same greed-driven trickle-down bullshit that we've willfully consumed for nearly half a century. And for good measure, they will, this time, destroy as many ballasts of good governance as they possibly can. Then, their blaze will exhaust itself—leaving behind a stunning path of destruction. Never mind the damage done.
We the People should by now recognize their ways.
Let's now acknowledge that many of our antagonists today would prefer that we conclude this essay with the Anti-Federalist Jefferson's 1801 Inaugural Address, wherein he listed his governing principles and said, "These principles form the bright constellation, which has gone before us and guided our steps through an age of revolution and reformation. The wisdom of our sages, and blood of our heroes have been devoted to their attainment..." However, it seems anything but likely that those currently at the helm of government are willing to acknowledge this in context.
For example, we are far removed from Jefferson's agrarian society, our need for a standing army is without question, and the Monied Interests have evolved beyond anything Jefferson could have imagined. So, we'll conclude, in a moment, with another example of Jeffersonian wisdom. Nonetheless, here's an abbreviated look at Thomas Jefferson's "bright constellation":
- "Equal and exact justice to all…
- Peace, commerce, and honest friendship with all nations…
- The support of the state governments in all their rights…
- The preservation of the General government in its whole constitutional vigor…
- Absolute acquiescence in the decisions of the majority…
- A well-disciplined militia…
- The supremacy of the civil over the military authority…
- Economy in the public expence…
- The honest payment of our debts and sacred preservation of the public faith…
- Encouragement of agriculture, and of commerce as its handmaid…
- The diffusion of information, and arraignment of all abuses…
- Freedom of religion; freedom of the press; and freedom of person…
- and trial by juries impartially selected."
To close, let's turn to the wisdom of an aging Jefferson, as he penned in an 1819 letter:
Of Liberty then I would say that, in the whole plenitude of its extent, it is unobstructed action according to our will: but rightful liberty is unobstructed action according to our will, within the limits drawn around us by the equal rights of others. I do not add "within the limits of the law"; because law is often but the tyrant's will, and always so when it violates the right of an individual.
We may not yet fully realize it, but we are literally in the process of deliberating (for lack of a better term) our foundational principles, and the chaos to come is going to test our commitment to Jefferson's Rightful Liberty—our foremost foundational principle of liberty and justice for all. We will soon know if we, as a nation, will continue our pursuit of a more perfect union.
The good news is that we, individually and collectively, get to decide which path we will pursue. The choice is ours.
Are we ready to defend our ideals, or have we lost interest in distinguishing virtue from vice and public good from private greed? Are we really to be remembered as the ones who abandoned America's Foundational Principles?
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Rejecting Trump's 'Failed Trickle-Down' Policies, 400+ Economic Experts Endorse Harris
"It is a choice between inequity, economic injustice, and uncertainty with Donald Trump or prosperity, opportunity, and stability with Kamala Harris, a choice between the past and the future," wrote the experts.
Sep 24, 2024
Several progressive economists were among more than 400 policy experts who signed onto an endorsement of U.S. Vice President Kamala Harris on Tuesday, arguing that the Democratic presidential candidate's proposals for an "opportunity economy" would improve the financial well-being of families across the country.
Stony Brook University professor Stephanie Kelton, a leading proponent of modern monetary theory; Center for Economic and Policy Research senior economist Dean Baker; University of California Berkeley economists Emmanuel Saez and Gabriel Zucman, whose work has focused on economic inequality; and former Labor Secretary Robert Reich were among the experts who signed the statement of support.
The economists noted that while working with President Joe Biden—who set out to be the "most pro-labor president" in U.S. history and has enacted numerous pro-worker policies—Harris "has taken action to strengthen sectors critical to the U.S. economy by increasing investment in small businesses, clean energy, and domestic manufacturing."
The vice president has pointed out during her campaign that she cast the tie-breaking vote to pass the Inflation Reduction Act in 2022, ushering in historic investments in clean energy and jobs.
Earlier this year, before Biden stepped aside in the presidential race, Harris announced a proposal to ensure state and local governments take action to reduce medical debt.
"From broadening access to affordable housing, to mitigating the financial burdens of medical debt, to rebuilding the nation’s infrastructure and expanding access to high-speed internet in rural communities—her leadership has made the economy stronger
and fairer for all Americans," wrote the economists, who also included center-left policymakers who served in the Obama and Clinton administrations.
The experts expressed confidence that as president, Harris would "work relentlessly to build a strong, pro-growth economy for all Americans."
The document was released the day before Harris is expected to give her latest speech focused on her proposals for an "opportunity economy." Since announcing her candidacy in July, Harris has unveiled proposals for a federal ban on price-gouging in the grocery and food industries, an expansion of Medicare's cap on prescription drug costs, and a restoration of the expanded child tax credit that was opposed by all Republicans in Congress, among other economic policies.
Republican presidential candidate Donald Trump is scheduled on Tuesday to talk about his tax plan, one of the economic policies that the experts said would "risk reigniting inflation and threaten the United States' global standing and domestic economic stability."
As Common Dreams has reported, Trump's plan to reduce the corporate tax rate from 21% to 15%—a further reduction from the one he pushed through as president in 2017—would benefit large companies and rich CEOs with a collective $48 billion in tax cuts, exceeding federal K-12 education funding.
Trump and other Republicans claimed in 2017 that their tax plan would create new opportunities for corporations to hire more workers and hand out raises, but analyses have shown that the policy disproportionately benefited the rich.
"The choice in this election is clear: between failed trickle-down economic policies that benefit the few and economic policies that provide opportunity for all," reads the statement. "It is a choice between inequity, economic injustice, and uncertainty with Donald Trump or prosperity, opportunity, and stability with Kamala Harris, a choice between the past and the future."
In a separate statement on Tuesday, dozens of anti-poverty and food justice groups were among those that endorsed Harris' price-gouging plan.
With food prices skyrocketing by 26% in some cases over the last five years, Harris has pledged to introduce rules in her first 100 days in office imposing "harsh penalties" on companies guilty of "greedflation"—keeping prices high in order to pad their profits.
"Your plan would tackle a problem that affects not just grocery shoppers, but almost everyone involved in the food system," said the groups, including the American Economic Liberties Project, Farm Action, and the Rural Coalition. "Addressing price gouging and corporate consolidation would not only help working Americans fight the inflation hitting their pocketbooks, but lay the foundation of a prosperous, sustainable, and more resilient food system for tomorrow."
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Americans Are Wising Up to the GOP’s Tired Trickle-Down Scam
Trump and other Republican politicians are trying their best to revive their nonsensical horse-and-sparrow supply-side rationale so the rest of us can pay to make the rich far richer.
Jun 13, 2024
They’re at it again. And it’s not even original: The trickle-down economics that two-dozen Republican governors and former U.S. President Donald Trump are reviving as you read these words has a long history.
“Trickle down,” of course, was the theory advanced by former President Ronald Reagan that if America only made rich people massively richer with staggering tax cuts, ending anti-trust regulation, and government subsidies for their industries, they would use all that extra free money to build new factories, hire people, and the abundance would trickle down to the average worker.
It was a lie, but it wasn’t the first time the GOP had tried that lie. Then knew exactly what they were doing, and what outcome it would produce. Instead of raising the pay of their workers, the rich people on the receiving end of Reagan’s, Bush’s, and Trump’s tax cuts simply added the cash to their money bins and investments, bought new yachts or trophy wives, and blasted themselves into outer space on penis-shaped rockets.
Thankfully, the Biden administration and this generation of Democratic politicians have rejected Reagan’s neoliberalism and low-tax ideology in favor of what centuries of history shows us works: for the wealthy to again pay their fair share of taxes to sustain the commons.
Nonetheless, Republican politicians think we haven’t noticed and they’re trying to pull it off again at both the state and federal level. A bill with 102 GOP co-sponsors (the Tax Cuts and Jobs Permanency Act) is in motion in the House of Representatives right now to double-down on Trump’s tax cuts.
How did we get here, and why are they still pushing something that’s so discredited it’s become a punch-line for late-night comedians?
The GOP was captured by the morbidly rich in the 1880s and has been dancing to their tune ever since, regularly throwing bones to bigots, religious zealots, womanhaters, and gun nuts to get enough votes to hold power.
Ever since that era, their main focus has been to increase the wealth of the morbidly rich while keeping down wages and saddling average people with as much debt as possible. As I’ve explained before, conservatives believe this crushing of the middle class is the best way to “ensure social stability” and thus “save America.”
The first Democratic president to call Republicans out for that era’s version of trickle-down economics (which back then, before income taxes, had to do with suppressing wages, fighting the early union movement, and letting industrial oligarchs wipe out small competitors) was Grover Cleveland, in his 1888 State of the Union speech:
As we view the achievements of aggregated capital, we discover the existence of trusts, combinations, and monopolies, while the citizen is struggling far in the rear or is trampled to death beneath an iron heel. Corporations, which should be the carefully restrained creatures of the law and the servants of the people, are fast becoming the people’s masters.
But the first tax on wealthy Americans went into place way before that, in 1839, shepherded through Congress by Representative Abraham Lincoln. It was a tax on luxury items and expensive land exclusively owned by rich people. As Lincoln wrote to his friend William Wait on March 2, 1839:
I believe it can be sustained, because it does not increase the tax upon the “many poor” but upon the “wealthy few”… [which] by taxing [luxuries and land], as is well known, that belong, not to the poor, but to the wealthy citizen.
On the other hand, the wealthy can not justly complain, because the change is equitable within itself, and also a sine qua non to a compliance with the Constitution. If, however, the wealthy should, regardless of the justness of the complaint, as men often are, when interest is involved in the question, complain of the change, it is still to be remembered, that they are not sufficiently numerous to carry the elections.
Lincoln followed up as president with the nation’s first income tax in 1861, put into place to fund the Civil War. It was also a progressive tax; it only hit people who made above $800 ($32,000 today).
However, taxing the rich to pay for the needs of the nation was also an idea that long predated even Lincoln. As former President Thomas Jefferson wrote to Pierre Samuel Du Pont de Nemours in 1811:
We are all the more reconciled to the tax on importations, because it falls exclusively on the rich, and, with the equal partition of intestate’s estates, constitute the best agrarian law. In fact, the poor man in this country who uses nothing but what is made within his own farm or family, or within the U.S. pays not a farthing of tax to the general government, but on his salt; and should we go into that manufacture, as we ought to do, he will pay not one cent.
Our revenues once liberated by the discharge of the public debt, and its surplus applied to canals, roads, schools, etc., and the farmer will see his government supported, his children educated, and the face of his country made a paradise by the contributions of the rich alone without his being called on to spare a cent from his earnings. The path we are now pursuing leads directly to this end which we cannot fail to attain unless our administration should fall into unwise hands.
Following Cleveland’s calling out of the morbidly rich of his day, late 19th-century advocates for that class came up with the “horse and sparrow” theory of taxation. This was back in the day when everybody used horses for transportation and people were used to seeing small birds pecking undigested grain from the horses’ droppings that filled America’s streets.
The sales-pitch was that if you fed horses extra oats, more than they could normally digest, they’d pass through all that undigested oat into their manure for the sparrows to pick at; rich people’s excesses, in other words, would spill over to the average “sparrow” working person. It was embraced by Republicans in Congress and not only didn’t it work; it was blamed, in part, for the Panic of 1896.
Republican Warren Harding revived Horse and Sparrow economics in 1920 (many people still owned horses) when he campaigned on dropping the then-91% top income tax bracket down to 25%. He was elected and kept his promise, the result being the “Roaring 20s” when the rich got fabulously richer while working people saw their wages actually drop (leading to an explosion of unionization efforts by pissed-off workers that were violently suppressed by employers and police).
It all came to a startling and final end in October, 1929 with the Great Crash that set off what was then called the Republican Great Depression (the “Republican” part of that label largely wore off after the election of Republican President Dwight Eisenhower in 1952).
Republicans stopped talking about horses and sparrows around that time, but the theory never really died; Reagan simply reinvented it in 1980 as “Supply-Side Economics,” aka trickle-down.
Today, Republican politicians—heavily supported by right-wing billionaires since five Republicans on the Supreme Court legalized political bribery—are trying their best to revive their nonsensical horse-and-sparrow trickle-down rationale so the rest of us can pay to make the rich far richer. Trump promises to renew his expiring tax cuts for billionaires if he’s elected, which the Congressional Budget Office (CBO) says will add another $4.6 trillion to the $7 trillion deficit he gave us during his four years in office.
In Kansas, Republican legislators keep pushing through new tax cuts for the rich (one would reportedly cut Charles Koch’s tax bill this year by almost a half-million dollars) and Democratic Gov. Laura Kelly keeps vetoing them. Republican legislatures in Wisconsin and Pennsylvania just passed tax cuts for the wealthy totaling $2 billion and $3 billion respectively, although both states have Democratic governors who will veto such legislation.
In Mississippi, however, Republican Gov. Tate Reeves and his GOP colleagues in that state’s legislature have radically and repeatedly cut taxes, threatening to eliminate the income tax (which produces a third of the state’s revenue) altogether. Rich Mississippians will be fine; the necessary cuts will fall on the poor and the state’s educational and physical infrastructure, which are not much used by the very wealthy who fund Reeves anyway; they send their kids to private schools and fly private jets.
Other Republican-controlled states are seeing similar actions to raise taxes and fees on working class people while cutting taxes on the morbidly rich. Georgia’s Republicans just cut state taxes by a billion dollars; North Carolina reduced their income tax on the richest from 5.5% to 3.99%; and Iowa is trying to transition to a flat tax so that even the poorest of workers must pay the same tax rate as that state’s most wealthy, who will see a huge tax cut.
Altogether, The Center on Budget and Policy Priorities notes, just between 2021 and 2023:
Twenty-six states cut their personal income tax rates and/or corporate income tax rates, 13 of them multiple times… Combined, the cuts will cost those 26 states an estimated $124 billion by 2028, including $13 billion that they have already lost (2022-2023) and $111 billion over the next five years (2024-2028)… This 3.6% share is equivalent to more than a third of states’ general fund spending on higher education and more than half of what goes to state correctional systems.
Thankfully, the Biden administration and this generation of Democratic politicians have rejected Reagan’s neoliberalism and low-tax ideology in favor of what centuries of history shows us works: for the wealthy to again pay their fair share of taxes to sustain the commons.
As President Joe Biden told an audience just last week:
We’ve gone from trickle-down economics to the point where we’re in a situation where we build from the middle class out and the bottom up. And that way the wealthy still do very well. No one wealthy is hurting at all. We’re in good shape. So, we have to keep it going that way.
Republicans have been hustling this scam for over 150 years, and in the states they control educational outcomes are plummeting, child and infant mortality is skyrocketing (along with homicides), and infrastructure threatens to disintegrate as funding cuts come online.
Nonetheless, it finally seems Americans are catching on and increasingly rejecting horses, sparrows, and politicians who try to sell them on more trickle-down tax cuts for the rich.
More Americans need to know this history. Pass it along.
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