I studied this logic in business school. It made a lot of sense to me at the time but, like many economic theories, it's oversimplifying the issue.
Companies don't hire workers because they have a lot of cash lying around and don't know what else to do with it. They hire workers because they need someone to perform certain jobs. If you make their base labor cheaper, it will just mean more money for executive bonuses, not more people hired.
This is why trickle down economics failed. Rich people will simply take the tax cuts, smile and stuff it in their pockets.
Same goes for mega-banks that were bailed out. They were supposed to take the money they received and then loan it out to small businesses and stir economic growth. Didn't happen. It was much safer to give the money to each other in bonuses.
Reagan himself once said that throwing money at a problem won't solve it. In this case, he was right.
Companies don't hire workers because they have a lot of cash lying around and don't know what else to do with it. They hire workers because they need someone to perform certain jobs. If you make their base labor cheaper, it will just mean more money for executive bonuses, not more people hired.
This is why trickle down economics failed. Rich people will simply take the tax cuts, smile and stuff it in their pockets.
Same goes for mega-banks that were bailed out. They were supposed to take the money they received and then loan it out to small businesses and stir economic growth. Didn't happen. It was much safer to give the money to each other in bonuses.
Reagan himself once said that throwing money at a problem won't solve it. In this case, he was right.
Atheist Forums Hall of Shame:
"The trinity can be equated to having your cake and eating it too."
... -Lucent, trying to defend the Trinity concept
"(Yahweh's) actions are good because (Yahweh) is the ultimate standard of goodness. That’s not begging the question"
... -Statler Waldorf, Christian apologist
"The trinity can be equated to having your cake and eating it too."
... -Lucent, trying to defend the Trinity concept
"(Yahweh's) actions are good because (Yahweh) is the ultimate standard of goodness. That’s not begging the question"
... -Statler Waldorf, Christian apologist
