We recently posed a question to our readers which was intended to be quite straightforward; the responses we received proved to be anything but! Our question was this: "If you believe in trickle-down economics, then shouldn't you support raising the minimum wage?"
Our thinking in posing the question was that the concept of supply side economics as espoused by Ronald Reagan and commonly referred to as "trickle-down economics" primarily calls for reducing or eliminating taxes on corporations and easing their regulatory burden. As this economic theory goes, by taking such actions, it is expected that the money saved would be re-invested in the economy and, thereby, benefit all with at least some of that new prosperity finding its way into the households of the working class.
With the rise of income inequality over the last thirty to thirty-five years resulting in such statistics as the top 400 wealthiest Americans accounting for as much wealth as the bottom 155 million Americans, it is safe to say that is clearly not happening. Therefore, and again as straightforward as we can make it, wouldn't raising the minimum wage serve as an effective mechanism for breaking the logjam of profits at the top of the income scale and help some of that wealth find its way into the pockets of the workers as, apparently, expected by Ronald Reagan and his economic advisor, David Stockman, who readily used the term "trickle down"?