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Friday, February 07, 2014

Horse and Sparrow Economics

In 1980, the average large corporation CEO’s salary was 50 times that of the average worker. Today that number is anywhere between 250 to 1,000. As companies grew, the workers have not shared in the growth. What  is called "Trickle Down" economics, a.k.a "Supply Side Economics" In the late 1800s they had an earthier name for it - "Horse and Sparrow" economics. If the horse eats enough oats, eventually there will be some oats on the road for the sparrows to pick over. It has proven to not work, at least for 90 percent of Americans.

Through the post-World War II era, the top one percent earned 10 percent of all income. By 2007, that figure had jumped to 23.5 percent, the most since 1928.

 Some others like to say that "a rising tide lifts all boats." In other words, if an executive makes $20 million a year, his income will eventually trickle down into the rest of the economy and ultimately benefit poor people.

But that theory hasn't exactly proven true, either. The highest-earning 20 percent of Americans have been making more and more over the past 40 years. Yet no other boats have risen; in fact, they're sinking. Over the same 40 years, the lowest-earning 60 percent of Americans have been making less and less.

Whether we want to admit it or not, what does NOT work is not some sort of economic system be it this system of that system, etc. What does no work is the money/profit system itself. If we, as a species, get rid of money, this planet has a chance of making it; if we do not, we don't have a chance.

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