Friday, September 7, 2012

Trickle Down Poverty

As more and more people leave the workforce due to the economy, many are missing out on an important fact. While President Obama and the Democrats are crying out for higher taxes on the rich, the rich are getting poorer too. Most people won't cry for the millionaires of this world, but they are taking a hit. What we should be crying over is the fact that as high income earners see their net worth going down they stop spending money. They stop hiring people. When they lose money, we all lose money in the form of lower sales, less jobs and less capital in the financial pipeline.

A friend who works as a handy man since he lost his job was in an upscale area here in Richmond, Virginia to fix a dishwasher. He went to a nice house where a lovely family lived. They had four children, two cars and a well kept house. The man paid my friend $300.00 in change. "Times are getting tough, aren't they?" my friend asked. He said the man had a melancholy look on his face and shook his head in agreement. "They sure are."

I spoke to a customer of mine a couple of months ago who was no longer able to pay his mortgage. He was once a six figure income earner who lost his car dealership when Obama "saved the auto industry." Now, he's renting and living a lifestyle he has never known.

Everywhere I go, I hear stories of people who can't get people to buy their services. The answer is always money trouble. In the food chain of economics, the big fish are still bigger than the rest of them, but even they are getting smaller. As they get smaller, the rest of the fish down the food chain get smaller. When there's no money in the pipeline, it's harder to get capital. Without capital and without the ability to earn, Americans may find themselves all broke if we continue to go this way.

Those who may think the government is there to help will find that after they become dependent on the programs, even they eventually will run out of money.  If Obama is reelected, you'll find us conservatives miserable for the next four years while the liberals continue to revel in their hope and change collecting their food stamps and disability checks. But after all that happens, those who love big government will join us in poverty long after Obama is gone. It's only a matter of time if we keep going on like this.

Ronald Reagan was the master of trickle down economics. A rising tide lifts all boats. Obama is the master of trickle down poverty. A draining swamp will leave even the biggest of yachts bottomed out.

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