Trickle-down hypocrisy

The Keynesian Fed economists who were dismissive of Reagan’s trickle-down theory still don’t appear to see the irony in the fact that they applied trickle-down monetary policy in the hope that by giving a boost to asset prices they would create wealth that would trickle down to the bottom 50% of the US population or to Main Street. It didn’t. [Link]

Well said, John Mauldin. The link is almost two months old. Does not matter. The observation is very relevant even now.

2 thoughts on “Trickle-down hypocrisy

  1. I think I mentioned this in another post on inequality. I am really curious about whether the trickle down didn’t happen at all or if it happened across borders. In other words, due to a more globally connected economy, the trickle down effect may not have happened within the local economy but somewhere else. One hypothesis would be that the trickle down happened in emerging markets like China – manufacturing, India – IT and so on. And, even within emerging markets, there would be a hierarchy where those with more capital and labor power would get more of the developed market trickle down, rather than those lower down. Maybe this is not the central factor but it surely must have exaggerated the effects…

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