Mendte: Trickle Down Economics
NEW YORK, NY. (KPLR) – The statistics show the economy is making slow improvement from the recession of 2007. But for nearly everyone, the recovery isn’t fast enough.
Tuesday, Larry Mendte says the answer lies with corporate America.
Remember trickledown economics?
The idea that if the government lets corporate America keep more of it profits, they will in turn buy more, invest more and hire more.
Money will then fall down from corporate heaven on all of us, I said money will fall down from the corporate heavens on all of us -not even a trickle.
Corporations can`t blame the economy, recovery is slow for us, but not for corporate America; they are making more money than any time in history.
Since the end of 2008, corporate profits have gone up over 20 percent.
But workers salaries have only gone up a little over 1%.
And the stock market is booming, the Dow is up over 14 thousand and still going strong.
So if corporate America is doing so well, why do we still have high unemployment and slow growth?
Because corporations are not just keeping their money on the sideline, but taking it out of the stadium and out of the country.
The biggest American corporations instead of investing and hiring in America are hiding their profits in off shore accounts to the tune of 166 billion that we know about.
Apple, GE, Microsoft, Pfizer, Merck, Johnson and Johnson, America’s biggest companies are hiding almost half of their profits to avoid taxes.
So not only are they not hiring, not giving out raises, not investing, they are avoiding paying their taxes.
And when you ask why isn`t somebody doing something about it; who? them? Everyone in that building hopes to get lobbying jobs with the companies I just mentioned.
Look I am pro-business; but corporate profits are eating our economy, if they aren`t going to let the money trickle down, at least pay your taxes. I know some of you are saying, well that`s just good business, I have another word for it, Un-American.