The Fall of 'Trickle-Down' and the Rise of 'Middle-Out' Economics
Call it the Osawatomie Doctrine: President Obama's election victory one month ago today began with a speech he made one year ago today
A year ago, President Obama gave a speech in Osawatomie, Kansas where he laid out a vision of how the economy grows. This vision proved a successful way to connect with voters during the campaign. Now, as Congress debates whether to push the U.S. economy over the so-called fiscal cliff and policymakers consider far-reaching changes to our nation's tax code and entitlement, this is the time to effect on the economic reality behind Obama's middle-out economics.
On December 6th, 2011, President Obama made the argument that the economy grows from the middle out. This argument was a direct refutation of the supply-side argument that claims that economic growth comes from lowering costs for businesses, most especially keeping taxes low and enacting limited regulations.
In Osawatomie, President Obama said, "I am here to say the are wrong. I'm here in Kansas to reaffirm my deep conviction that we're greater together than we are on our own. I believe that this country succeeds when everyone gets a fair shot, when everyone does their fair share, when everyone plays by the same rules".
This economic message was honed during the campaign. President Obama emphasized this theme in the second debate and spoke regularly about it this fall. "I believe you grow the economy from the middle out," he said in a key October ad.
1. The sad fact is the One Percenters didn't do their part
They didn't honor their part of the bargain.
Trickle down and the Bush tax cuts were supposed to enable the One Percenters to re-invest in America. Instead, they took their newfound swag offshore to create jobs in India and China and to hide their geld in secret, off-shore tax havens.
If anyone understands what happens when you don't honor an agreement, it should be the One Percenters...