Trickle Up

I am a strong supporter of the Trickle DOWN theory. What is the best thing for all? For everyone to have a job, pay taxes, buy things, and keep the economy rolling along. By allowing Businesses to keep their money by giving them tax breaks, it would allow them to trickle it down to workers, hiring more, giving raises.

Back then it was better than what was going on, people getting lazy and living off Welfare checks.

But what happened was not true Trickle Down. Businesses were given breaks, but there were no contingencies to make sure that they trickled any money down. Most of the time, they kept if for themselves. Giving the CEOs more pay and outrageous bonuses.

But that wasn't enough. Businesses cut costs from payroll to help pay even more money to the CEOs. And instead of doing what was best for Employees, who actually run the businesses, the emphasis went to rewarding the Stockholders. How does cutting health care costs to Employees help anyone? It doesn't. But the company made more profits and distributed more funds to it's Stockholders, and CEOs and that's what was important.

But it's not good for any Economy for a select few to have money. It is better for many people to have some money. And it's better for the Economy for a business to build and sell 100 $25,000 cars than 25 $100,00 cars.

So here we are now. Years of greediness have caused our current Economic crisis, not anything else. Instead of making sure that the "workers" were taken care of, only the select few were rewarded. Now the select few will be called upon to pay more taxes to pay for Welfare to the very Employees that they short-changed.

What we need now is to reverse what has happened. The Economic Stimulus plans are not working. Why? They are doing the same thing, rewarding the select few. Take ALL of that money, and fund Home Loans. Have all people who have had their homes foreclosed on, and anyone who is threatened to lose their homes to be able to refinance at a FIXED rate, for what ever amount of time it takes. 4.0 rate for 60 years instead of insanely adjustable rates for 30 years? Might be doable.

You think I'm crazy? No, think about it. What drove our Economy for the last few years? The housing market. It helped provide the most important thing in our lives, and the Government's. A home for us, and Taxes for the Government.

Still think I'm crazy? Let's see what might happen.

Government uses Bailout money to buy bad home loans and allows homeowners to refinance at more favorable rates.

1. Government has steady income from repayment of loans AND from payment of Property taxes. And if anyone can't make the payments, the Government owns the land. They can eventually sell it for profit. It wouldn't hurt so much to hold onto.

2. People will pay less money for their mortgage and they will have money freed up to buy things, thus stimulating the Economy. Give more money to more people, and more people will buy things.

3. With people in homes and paying less, they are more self sufficient, and they will not end up homeless or in need of Government assistance, which would cost those not in dire straights more in taxes and in other financial ways. People will turn to crime, costing more in insurance.

4. Removing bad loans from the Banks will free up Credit, and in turn they will start lending money again. Businesses will be able to get back in business and give people jobs.

This would be the "Trickle UP" theory.

Some of you may think I'm a Liberal, or a Democrat for thinking this way. Everyone needs to work and pay taxes. That is more Conservative and Republican. But I'm neither. I'm a realist. People out of work and in the streets and on Welfare is NOT good for me, good for you, good for the Economy or good for the Country.

In the 1990's the same thing happened to Japan. Japanese Banks and Businesses invested a lot of money in Real Estate, in Japan, and abroad. When the Real Estate market went down, so did the Japanese Economy. Japanese banks were burdened with bad loans. The Japanese Government spent their money on a Economic Stimulus plans by giving money to Banks and Businesses, instead of relieving the banks of their bad loans. The Japanese Economy never recovered. Lesson heard, but so far, not learned.

Imagine that. We've come full circle. We're almost back to where we were when the "Trickle Down" theory was poorly implemented. People that work will start paying a lot in taxes for people out of work and needing Government assistance, or Welfare.