The Horse and Sparrow economic model i.e. trickle down economics is a failed economic philosophy. One of the biggest problems that the world faces is the invisible hands that are in our pockets. The way Wall Street is structured – we are paying the greedy bankers with just about everything we do. They make money on the gas we buy…the food we buy….the homes we live in. They make money on the food stamp cards that government gives out. They are LEECHES sucking blood out of the system. It used to be a symbiotic relationship, but since the advent of financial deregulation – those days are gone. Now – it’s just vultures and a soon to be dead carcass.
Read more about why it’s called”Horse and Sparrow” HERE.
Krugman writes HERE:
Once upon a time, this fairy tale tells us, America was a land of lazy managers and slacker workers. Productivity languished, and American industry was fading away in the face of foreign competition.
Then square-jawed, tough-minded buyout kings like Mitt Romney and the fictional Gordon Gekko came to the rescue, imposing financial and work discipline. Sure, some people didn’t like it, and, sure, they made a lot of money for themselves along the way. But the result was a great economic revival, whose benefits trickled down to everyone. You can see why Wall Street likes this story.
But none of it — except the bit about the Gekkos and the Romneys making lots of money — is true. For the alleged productivity surge never actually happened. In fact, overall business productivity in America grew faster in the postwar generation, an era in which banks were tightly regulated and private equity barely existed, than it has since our political system decided that greed was good.
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