Trickle-down economics means the rich stay rich and the poor stay poor

According to The Independent’s economics editor Ben Chu, what would later be championed by the free-market right was actually first spun as a joke by one-time circus cowboy and humourist Will Rogers. At a time when the US was in the midst of the Great Depression he said:

Money was appropriated for the top in hopes that it would trickle down to the needy.

Trickle-down economics is the idea that reducing the tax burden on the wealthiest is good for the least wealthy, as the rich see their disposal incomes increase and therefore spend more on services that companies can reinvest and create new jobs.

It’s also completely wrong, claims a report out this week from former US Treasury secretary Larry Summers and shadow chancellor Ed Balls.

The report, from the Centre for American Progress, states:

Left to their own devices, unfettered markets and trickle-down economics will lead to increasing levels of inequality, stagnating wages, and a hollowing out of decent, middle-income jobs.

According to Summers and Balls, the only thing tax cuts for the rich create is a growing income gap, as the wealthiest members of a society do not necessarily ‘invest’ in it, they could just save their money for example.

This graphic helps explain the idea versus the reality.

Trickle Down

Once you realise that trickle-down economics does not work, you will see the excessive tax cuts for the rich as what they are: a simple upward redistribution of income, rather than a way to make all of us richer.

Ha-Joon Chang, economics professor at Cambridge University
What’s the alternative? The Summers-Balls report’s suggestion is simple: Higher wages for ordinary workers, increased tax rates for the super-rich and corporations, and the closing of international tax loopholes, with the money instead being spend on public infrastructure.

That doesn’t sound like too much, especially in a week when it was revealed that within 12 months the richest one per cent of the planet will be richer than the remaining 99 per cent…

Original article by Ben Chu (edited by i100 staff) 

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Executive High Pay | Because We’re Worth It | Hug a Fat Cat in 2014

rich_fatcat_banker_or_businessman_with_a_pot_of_gold_0521-1001-2913-3608_SMU

2014 has been another successful year for we the management elite. One is reminded of that dear old Greek chap Aristotle who so accurately opined

For that some should rule and others be ruled is a thing not only necessary, but expedient; from the hour of their birth, some are marked out for subjection, others for rule.

(Aristotle made his fortune from the invention of the Kebab and never looked back)

According to the High Pay Centre[1]    In 2014, we have done rather better financially than expected and one might reasonably ask: ‘What Recession?’

Our executive pay has grown from 60 times that of the average worker to almost 180 times since the 1990s said their report.

The FTSE 100 Chief Executives are paid an average £4.3 million[2], equivalent to hourly pay of well over £1,000. Executive pay has increased by 74% over the past decade, while wages for ordinary workers have remained flat.

Top bosses now take home more in two and a half days than the average worker earns in a year so we are well on our way to our target of; 1 day’s work for us equals 1 year’s work for the Great Unwashed, which feels about right.

Of course we have to thank a few others for helping us rise to these glorious heights where we rightfully belong. Our Conservative Party colleagues, for helping us drive the little people’s wages down enabling our profits to rise and triggering our performance related bonuses. The Socialist lot for electing Ed as their top man, who is as effective as a non-exec in a remuneration committee and of course, UKIP who have managed to convince everyone that it’s immigration that’s at fault and why the country is in such a state rather that the mis-management of the banking, financial and other key industries by us the Fat Cats[3].

To be clear we don’t want Farage’s lot in power or else we are going to have to pay a living wage to some UK born and bred chap who actually has some rights.

So in this season of goodwill to all, let us put apart our differences and remember those less fortunate and poorer than us by raising a toast to all skint people everywhere who support us by their toil and strife and especially those who aspire to be like us and don’t rock the boat.

A Happy Xmas to You All

Dick

Notes:

1: A bunch of socialist malcontents mostly on the average wage

2: For the benefit of HMRC we actually earn £43,000 in the UK the rest is earned in

Lichtenstein

3. Fat Cats are very popular on YouTube as although they are a teensie bit selfish

underneath they are lovely and huggable, just like us really.

Note: Please follow this blog and/or comment and great luck and good things will allegedly come to you

Image: http://www.acclaimimages.com/_gallery/_pages/0521-1001-2913-3608.html

 

Korean Airlines VP goes Nuts about Nuts

Here at ‘How To Be Rich and Successful’, which is now South Krukiztan’s 13th favourite Blog, we often acknowledge those whose leadership skills and management ability become a shining beacon for all of us who aspire to be the ‘C’ level execs that ordinary people talk about in wonder at Sales Conferences the world over.

To recap the story: The head of Korean Air’s in-flight service has stepped down after a dispute with a crew member over the way she was served nuts. Travelling as a passenger, Korean Airlines VP Heather Cho reportedly delayed a flight to expel a crew member over the way she was served nuts. Ms. Cho was seated in first class when she took issue with a flight attendant who handed her macadamia nuts in a bag, not on a dish. Ms Cho is actually the eldest of the airline’s Chairman Cho Yang-ho’s three children, who are all executives with the airline so in reality is really a VIP VP

Of course the world’s press are up in arms about this, portraying her as ‘arrogant’, ‘only got the job because of nepotism’ and ‘out of touch with reality’ as though these attributes were a bad thing rather than key requirements of a successful Senior Manager.

The so called journalists who write this rubbish  probably have never flown first class and if they had they would realise how important this issue was. It’s all very well chucking packets of nuts and spraying beer over the people at the back of the plane but there are standards to be met when you turn left at the door. Ms Cho was absolutely ‘On Brand’ as marketing people are inclined to say. No idea what that means but most of them know their Chablis from their Chardonnay and also fly in the pointy end so lets not quibble with the concept here.

I, of course, fly first class everywhere and many times a year and I for one will not fly with Korean Airlines ever again. In fact I won’t fly with Cathay Pacific (napkin folded incorrectly), Delta (wine glass with a smudge on the base), Emirates (knife blade pointing inwards to plate) and the list goes on. I don’t spend £1000’s for this kind of appalling service (actually I don’t, the company does, but the point is still valid) without expecting to be treated as a Deity not an ordinary human being. With Emirates we were half way to Dubai when I demanded the captain return to London or at least hurl the steward out into the Adriatic and it was only when he kindly gave me another bottle of the ‘Krug ’57 that I relented and allowed to plane to resume its course to its destination.

Through my contacts I have obtained photos of what was served rather than what should have been served by the hapless Cabin Crew member, who apparently has still yet to be arrested. I will be forwarding these to the appropriate authorities in order to speed up this mis-carriage of justice.

THE WRONG NUTS

THE WRONG WAY TO SERVE NUTS

THE RIGHT NUTS

THE RIGHT WAY TO SERVE NUTS

Hopefully the airline will come to its senses, reinstate her and then promote her to the board. Marvellous lady, got more spunk than many a man I know.The good news is that the Institute of Mediocre Management will be approaching Ms Cho to see if she will agree to speak at our annual get together at the Royal Fartwanglers Club on the subject of Plebs and their occasional usefulness

Stop the harassment of Rich People! Sign up now* to give them a voice

Anne Wojcicki, former spouse of the founder of Google, Sergey Brin parks where she wants to. When she is caught, which is 50% of the time, she simply pays the fines.

Although she has a net worth of around $20Bn and can afford to pay these charges off immediately it’s still blatantly unfair that the Californian authorities have yet to offer a bulk discount enabling her to save money on her contributions to the State. What about two fines for the price of one, a season ticket or 50% off on Black Fridays?

And why should we clamour for help for this wonderful lady? Well single handedly due to her admirable pig headiness, understandable upper class arrogance and refusal to fall in line with the pseudo socialist mantras of the local traffic enforcement authorities, she is funding whole communities with her selfless acts. Yet another example of how Rich People are often persecuted by those they selflessly help out.

We all know that Rich People are intrinsically better than Poor People. This is because they have more money ergo they are more successful, obviously work harder and certainly dress better so why the authorities (note; mostly made up of poor people)  want Rich People to follow rules primarily aimed at the lower classes is anyone’s guess.

It is just about understandable that this should occassionally happen in the UK, where from time to time we have socialist cabals in power but its intensely worrying that this happens across the pond where you regularly shoot Poor People and where Rich People are usually merely admonished respectfully.

The *Committee for Rich Advantaged People has the following proposal which will be presented for consideration and then forced through anyway. The following irritations should NOT apply to the better off:

  • Parking restrictions
  • Speed restrictions
  • Queuing for anything
  • Waiting for anything
  • Being forced to mix with those of lower standing

And how do you join us at CRAP? Just tick the boxes below and if all these apply then you are in.

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Up the Ruling Classes!