In an interview with the News Tribune, U.S. House Rep. Peter Stauber made the same mistaken trickle-down economics claim as many Republicans (“Stauber takes on Biden: ‘We can do better’,” April 30). Trickle-down economic policies, while attractive in theory, have not been proven to be very successful in the real world.
Trickle-down economic theory, advocated by President Ronald Reagan, claims the wealthy and large corporations are the job creators, and the profits of business operations filter down to the workers. President George H.W. Bush labeled this claim as “voodoo economics.” The mere fact of the outrageous wealth gap in our country proves Stauber incorrect. The wealthy and corporations hold onto their profits. The workers who produce the goods and services receive little consideration.
Contrary to Stauber’s claim, the wealthy and corporations are not the job creators. Consumer spending drives 70% of the economy. Increased demand creates jobs. The Biden administration has put money into people’s pockets to increase their spending (demand), thus contributing to ending the virus recession and reducing the financial problems of a large segment of Americans.
Stauber’s claim that the middle class will pay for President Joe Biden’s tax increases on the wealthy may partly apply in corporations’ ability to pass on costs to consumers. But, perhaps this would be affected by the fact that, in 2020, 55 large corporations paid zero income tax. Moreover, if, for example, a wealthy person is sitting on $10 million and a wealth tax of 3% is imposed, he or she cannot pass it on because there are no direct transactions with consumers. And, is it likely the wealthy person’s standard of living would decline?
It is time for Republicans to move into the 21st century.
Donald E. Maypole
Readers' View and Local Views
Letters are limited to 300 words, must be the original work of the author and must be exclusive to the News Tribune. Letters are edited for style, space, accuracy and civility.
Letter writers are limited to one published submission every 30 days.
With rare exceptions, the News Tribune does not publish poetry; letters that are anonymous, libelous or attack other writers; consumer-complaint letters; thank-you letters; or letters generated by political or special-interest campaigns.
We will consider exclusive Local View columns of 600 words or fewer. Authors should possess unique insights, and their commentaries should demonstrate greater knowledge of their subject than letters.
Email submissions to: firstname.lastname@example.org
Mail to: Readers' Views, Duluth News Tribune, 424 W. First St., Duluth, MN 55802.
Fax to: 218-720-5120.
Include a full name, address and daytime phone number. Only names and hometowns will be published.