Progressive Desire for Quantitative Easing Proves Reagan's "Trickle Down" Works

I wanted to take this opportunity to finally, for once and for all, bury the progressive talking point "trickle down economics don't work." The fact is "Quantitative Easing" (QE) is nothing more than injecting more dollars into the system to flow throughout the system, thus creating, on paper anyway, economic activity. That is the progressive version of trickle down economics.

Ronald Reagan was the first major American figure to openly advocate that more dollars flowing from the top down would create economic activity thus creating wealth. The theory is basically as follows: if companies and consumers have more cash they will spend or save it. Either way that money is injected into the economy. If spent by a company or consumer someone else will be enriched, be it a company who will pay employees or spend it on infrastructure or employ it to acquire more raw materials to then manufacture. If citizens have more cash thus greater cash flow they too will spend it or save it. If they spend it clearly business will increase. If they save it banks will have more money to lend, thus also creating economic activity.

Progressive desires for repeated quantitative easing is their version of more dollars flowing throughout the system to create wealth. The difference is Reagan's version was for government to allow citizens and business to keep more of their earnings. The progressive version is for government to confiscate the funds through taxation then redistribute it according to their own wishful ideological desires. Who is the better arbiter of one's wealth - government or the one who earned it in the first place?

For years all we have heard from the tired left is the same oft repeated mantras..."trickle down is BS." "It's just an excuse to allow Republican fat cats and their businesses get richer," and all that nonsense. How do progressive's now reconcile QE with "trickle down?" Answer....they don't! Progressive's never reconcile anything they advocate for. If progressivism is known for one thing above all else it are those delightful "unintended consequences."

Quantitative easing is trickle down in all its glory. It's an effort to falsely prop up economy by injecting cash into the system with the knowledge (yes, progressive leaders know the truth but they can't admit it to their following or they would lose the sycophant support) that more dollars floating around will increase economic activity. And it will, but at what price is the question? The price of progressive trickle down is clearly inflation and increased deficits and debt as the source of this increased cash flow is government printing presses.

Now, IF, IF, IF new and increased cash flow were due to say ten million pounds of new gold found in the US, or greatly increased economic activity in the private sector, then the increased cash flow would be awesome. But since our money is really nothing more than "fiat currency," it isn't real wealth. Government's printing paper as legal tender is "fiat money" meaning it is not backed by any real source of wealth short of government assuring us it is worth what government claims it is. As long as government is strong and sound it works, but in times of economic or political stress, not so much as we can clearly see in the US today.

Back to my point...we are assured by progressives that more injecting of money into the system will fix all the ills, therefore they are all for Bernanke and the Fed printing more money. The fundamental difference between trickle down and QE is that at least trickle down uses the greenbacks already in existence to increase wealth through increased cash flow as opposed to the printing of more greenbacks to increase cash flow. But basically they are the same desired result...more money moving through the system to generate more economic activity thus generating, at least on paper, more wealth.

How do progressives get away with this one may ask? Simple! They are preaching to the choir first and foremost, and the choir isn't all that swift in terms of actually understanding economy. I am willing to bet my life the run of the mill lefty has no clue as to how QE and trickle down are almost identical concepts, yet trickle down is a proven success, but QE leads to massive inflation...hyper inflation if kept up, where as trickle down does not generate nearly so much inflation or lessening of the worth of one dollar.

More money moving through the system due to economic activity is a good thing. More printed greenbacks being tossed into the pile only creates inflation, thus making each dollar worth less, which will eventually lead to it becoming worthless.