Trickle-Down Economics Must Die, Long Live Grow-Up Economics

The myth of inequality-driven economic growth and how to achieve real prosperity for all

Scott Santens
Jul 22, 2015 · 18 min read

“Economics, as it has been practiced in the last three decades, has been positively harmful for most people.” — Economist Ha-Joon Chang

An Undead Idea

Section 1: Multiplication

Wall Street earned twice as much in year-end bonuses alone as all full-time minimum wage workers combined earned the entire year.

In 2013 and 2014, by giving huge bonuses to those on Wall Street instead of low-wage workers, we actively prevented the creation of almost $50 billion in new national wealth.

Fast Money vs. Slow Money

Source: St. Louis Fed

The velocity of each dollar in our total money supply is now lower than it’s ever been recorded, in all of U.S. history.

Source: CRS

Section 2: Subtraction and Addition

A healthy economy is not one of extreme inequality, but one where everyone has enough money to spend into it, to the point they can start saving what they don’t need to spend.

OECD Findings

Source: OECD

IMF Findings

Source: IMF
The United States: Taking from the working poor and middle classes to give to the rich for 40 years.

“Policies that help to limit or reverse inequality may not only make societies less unfair, but also wealthier.” — OECD, 2014

A BIG Economy

Source: multpl

Section 3: Evidence for Growth

Effects of Cash Transfer Programs

Source: International Rescue Committee
Source: The World Bank

Effects of Multi-Millionaire CEOs

Effects of Billionaires

Conclusion: Division

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