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The Meaning of "Trickle Down" Economics

This Los Angeles Times news story discusses the ways that LA's "wealthy" have turned frugal in the wake of the recession.

What's most interesting, though, is the discussion of the impact on the city's less-than-wealthy retailers and others.  A variety of service providers are offering their expertise at reduced rates and otherwise struggling: 

Some spending cutbacks are the sort only a multimillionaire could appreciate, like canceling one of multiple private club memberships or sharing a private jet with another family. But the malaise has also hit middle-income Westsiders who in flush times helped keep cash registers ringing. . . . 

The recession's effects are rippling out to a wide range of entrepreneurs.

Hello?  That's what happens when "the wealthy" are suffering (even relatively) economically -- and when they become so overtaxed that they start cutting back on the luxuries that helped keep less affluent people in  business.

Remember all the derision of the concept of "trickle down" economics in the '80's?  Well, it looks like even the LA Times is part of the "trickle down" economist crowd now.

Don't look for any help from President Obama in the form of the tax repeal that the first President Bush secured for struggling yacht builders.  Don't forget that for Obama, taxes aren't just about raising revenue -- they're also about social levelling, otherwise known as "fairness."

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