Almost no one believes the neoliberal lies anymore

As Congressional Republicans work hard to cut corporate taxes in order to boost economic growth (which is "totally not a huge giveaway to the wealthy elite and ownership class at the expense of the working class" wink, wink), a new poll came out concerning who still believes in trickle-down economics.

Conservative economists have long argued that cutting taxes on businesses would lead to faster economic growth. In recent weeks, however, backers of the Republican plan have emphasized a related claim: If companies paid less in taxes, they would pay their workers more.
The White House Council of Economic Advisers, for example, released a report last month that estimated that the proposed corporate tax cut would increase a typical household’s income between $3,000 and $7,000 a year — a claim many independent economists have dismissed as unrealistic.
The public appears to have similar doubts, and its skepticism stretches across the political spectrum.

econ-taxpoll.png
After three decades of broken promises of money trickling down, it's not a surprise that most people have stopped falling for it.
What is a surprise is who else no longer believes it - CEOs.

Corporate executives are flat out saying that a cut in their taxes isn't going to make them invest more in their companies (which would translate into jobs and wages).
Where would that money go? Stock buybacks.
stock buyers_0.jpg
While economists, politicians and media pundits try to tell us how great the labor market is, workers are telling a very different story.
behind.png
In fact, studies say that workers aren't getting any raises at all.

Over the past 12 months, 52% of American employees did not see their wage increase either through a pay raise or by getting a new job. For workers ages 53 and older, the percentage was even higher (64%), compared to 47% of younger people in the labor force, the study by Bankrate.com said.

Today's numbers show that this trend is not getting any better.
earns_0.jpg

Share
up
0 users have voted.

Comments

How about all the comments to this essay actually apply to the topic of this essay.

Sorry if that sounds a little pissy, but yesterday's comments annoyed me.

up
0 users have voted.
Steven D's picture

@gjohnsit But to stay on topic, my millennial daughter got a raise! But only after she accepted a 2 year gig job (i.e., she is an independent contractor who is not an employee of the company). It disappears after 2 years. It's not really related to her degree (biomed engineering) though she has been given some vague promises she will be introduced to people at the place she works who are in the R&D department and maybe that will lead to a real salaried employee status job in her field.

But hey, she can now afford to pay off her student loans for the next two years so there's that.

up
0 users have voted.

"You can't just leave those who created the problem in charge of the solution."---Tyree Scott

The Aspie Corner's picture

@Steven D Had two contract jobs each lasting three months. Same vague promises and nothing ever came of either of them.

Corporations are little more than slush funds for executives at this point.

up
0 users have voted.

Modern education is little more than toeing the line for the capitalist pigs.

Guerrilla Liberalism won't liberate the US or the world from the iron fist of capital.

@The Aspie Corner is damned straight. It is all about the bonus, period. Cut expenses? Get a bonus. Lay off some people? Get a bonus. Reduce your own spend by getting your vendors to take as little as you possibly can? Big bonus. On and on it goes, all while they blather on about how great this is for the country and company while they strip those down to an empty shell. Ooops, company went bankrupt and can no longer pay employees at all? HUGE bonus on your way out the door! USA, USA, USA!!!!

up
0 users have voted.

Only a fool lets someone else tell him who his enemy is. Assata Shakur

@Steven D Hey Steven D. , mines still looking for that first temp contract job in Genetics. Trying to stay afloat doing construction. Wishes he never pursued a degree.

up
0 users have voted.
Steven D's picture

@Snode what we are doing to are young people, and then I see the media mocking them at the same time.

I wish yours better luck soon.

up
0 users have voted.

"You can't just leave those who created the problem in charge of the solution."---Tyree Scott

ggersh's picture

Saw this comment over a NC, it stuck with me.

"Instead of the Todt Organization and “Work sets you free,” we have the WalMart Organization and “Work for nearly free and sleep in our parking lot.”

up
0 users have voted.

I never knew that the term "Never Again" only pertained to
those born Jewish

"Antisemite used to be someone who didn't like Jews
now it's someone who Jews don't like"

Heard from Margaret Kimberley

@ggersh
They managed to gut labor unions and convince workers that a dog-eat-dog society would make us all rich. No more solidarity.

Well, without labor unions the workers lost all of their leverage. Wages stagnated or fell.
And now even corporations won't invest in building the economy because they know that consumer demand isn't coming back.

Capitalists got what they wanted, and it screwed the economy.

up
0 users have voted.

@ggersh they have big “no trucks or campers allowed” signs all over the parking lot. (Didn’t they used to allow them?) Go find a bridge to sleep under, I guess.

up
0 users have voted.

Idolizing a politician is like believing the stripper really likes you.

Big Al's picture

they will share it and we will all prosper!

What, few believe that anymore? Well mercy me, we might be making progress.

Although it doesn't matter because they're going to do what they fucking want.

up
0 users have voted.
edg's picture

Hasn't every single penny of the savings from outsourcing, H-1B visas, offshoring, and "Double Irish with a Dutch Sandwich" style tax strategies gone into massive wage increases for employees?!?!

up
0 users have voted.

@edg
U.S. Wages Rising At The Fastest Pace In Years Amid Solid Hiring
The Most Underrated Story About the U.S. Economy
Income growth is faster at the bottom than at the top. Thank a growing economy, falling unemployment, and minimum-wage hikes across the country.

US wages are rising, maybe faster than you think
As wages rise, CEOs are starting to complain

So what's the problem with you? You must be the exception because everything is awesome!

up
0 users have voted.
Citizen Of Earth's picture

Those poor dumb Schmucks will believe anything that comes out of Pres Douchebag's pie hole. Hahaha.

But yeah, the general public seems to be smartening up, yet they are still voting for the two parties that couldn't give a flying f*** about them.

up
0 users have voted.

Donnie The #ShitHole Douchebag. Fake Friend to the Working Class. Real Asshole.

GreatLakeSailor's picture

It would be revealing, I think, to see that last chart (Real Average Hourly Earnings MoM) broken out over income groups (0-10%, 10-20%, etc., etc...). My guess is that the 90-100% (and maybe the 80-90%) is significantly propping-up the numbers.

up
0 users have voted.

Compensated Spokes Model for Big Poor.

Azazello's picture

Federal and state governments have been cutting taxes, and defunding themselves, since Reagan.
If tax cuts really did improve the lives of the people we'd be living in a Utopia by now.

up
0 users have voted.

We wanted decent healthcare, a living wage and free college.
The Democrats gave us Biden and war instead.

Neither do I.

up
0 users have voted.
edg's picture

@MrWebster

CEO compensation increased 120% between 2003 and 2007.

up
0 users have voted.

@edg

up
0 users have voted.
Pricknick's picture

up
0 users have voted.

Regardless of the path in life I chose, I realize it's always forward, never straight.

Consumer demand is what creates jobs. We could remove ALL of the corporate taxes and ALL of the corporate regulations, if CEOs look across the general economy and don't see sufficient consumer demand, they will STILL not expand, hire new people or raise wages.
They're not going to throw money into a fire, even if it's free money. There must be sufficient consumer demand for them to invest in expansion, hiring more people etc.
COMSUMERS ARE THE "JOB CREATORS".
This is very basic economics, but we never hear democrats make this simple point.
Just like with the Reagan tax-cuts, the Bush tax-cuts etc., DC democrats will find some way to go along with them.
My prediction is that the republican budget will include the Obamacare CSRs (because the insurance co.s want them), yet still contain most of the tax-cuts for the rich, but they will also attach DACA to the budget, the democrats will go along with it, then accuse anyone who opposes the budget as being "racist".
This is really not a hard prediction to make.

up
0 users have voted.

Mike Taylor

@Mike Taylor

Hey, if corporations wanted consumer demand and a healthy economy, they'd hire and pay enough for people to be able to afford their products/services. Money for nothing is better, at least until the public purse runs dry and they have to start cannibalizing each other at an accelerated rate.

As long as they're (each, lol, apparently) the last one to die with the most toys, who cares if they do so on a dead and industrially/militarily poisoned world where money has become meaningless because they have it all now - and there's nothing left out there to buy and nobody remaining to sell it to them anyway?

up
0 users have voted.

Psychopathy is not a political position, whether labeled 'conservatism', 'centrism' or 'left'.

A tin labeled 'coffee' may be a can of worms or pathology identified by a lack of empathy/willingness to harm others to achieve personal desires.