President Obama backs the “trickle up” economic theory

Well I did not think my new economic theory would win such international renown in such a short space of time.  I wrote about the economic theory of the trickle down effect from tax breaks for the rich, and how it had without doubt failed completely as an economic policy.

I recommended that the USA adopt  my theory, which has been proven to work in boosting economic prosperity.  I termed it the Trickle Up effect. 

Obama, reaching back to Roosevelt, has come out in favour of removing the squeeze on the middle class, and taxing the rich.  Two days after my blog posting, maybe he is reading my blog, huh!

As the Guardian reported

“… Obama's broader message was a sweeping call for the working class to get a "fair shot" and a "fair share" as he pushed for wealthier Americans to pay higher taxes and demanded that big corporate interests play by the rules.

"This is the defining issue of our time. This is a make-or-break moment for the middle class," Obama told a cheering crowd in a high school gymnasium in Osawatomie, Kansas.

"At stake is whether this will be a country where working people can earn enough to raise a family, build a modest savings, own a home and secure their retirement."

This is an important point, the financial and fiscal support for the middle class and lower earners.  It is they that make an economy work efficiently.  It is they that create jobs.  Companies don’t, rich people don’t, spenders do.  As I discussed in this blog.

It is not brain surgery.  You give the relief to that part of the demography that is most likely to spend it, thus encouraging growth in the economy, which drives more jobs for the un / underemployed, who because they too are in the lower income demographic will spend all their earnings as well. The rich [elites] benefit because the tide is rising for all.  It is a very simple cycle. 

And it works.