Tax cuts for the wealthy didn't boost the economies of the U.S. and 17 other countries — but they did worsen income inequality.

geteilt von: https://feddit.org/post/3946115

Aus Mastodon von Michael Albert übernommen:

Britische Forscher haben herausgefunden, dass Steuersenkungen für Reiche keinen (Trickle-Down-) Effekt auf den Wohlstand eines Landes haben. Die Reichen werden lediglich reicher und die Ungleichheit steigt.

  • Xatolos@reddthat.com
    23·
    2 months ago

    Trickle down economics is also illegal in the USA. It was attempted by Ford Motors in 1919.

    Dodge v. Ford Motor Co. (1919), is a case in which the Michigan Supreme Court held that Henry Ford had to operate the Ford Motor Company in the interests of its shareholders, rather than in a manner for the benefit of his employees or customers.

    Ford declared:

    My ambition is to employ still more men, to spread the benefits of this industrial system to the greatest possible number, to help them build up their lives and their homes. To do this we are putting the greatest share of our profits back in the business.

    …in the opinion written by Russell C. Ostrander argued that the profits to the stockholders should be the primary concern for the company directors… The court therefore upheld the order of the trial court requiring that directors declare an extra dividend of $19.3 million. It said the following:

    A business corporation is organized and carried on primarily for the profit of the stockholders. The powers of the directors are to be employed for that end. The discretion of directors is to be exercised in the choice of means to attain that end and does not extend to a change in the end itself, to the reduction of profits or to the nondistribution of profits among stockholders in order to devote them to other purposes.

    The whole idea of trickle down economics was never going to happen because the first company that would have tried it (again) would have just lost in court and the CEO that authorized it would be fired and removed.