Former Labor Secretary, Robert Reich Finally Endorses Trickle Down Economics

Apparently, the planets have aligned, the North and South Poles have reversed, and Mr. Reich has done a 180 on Trickle Down Economics.

Since 2017, the 15 largest corporate beneficiaries of Trump’s tax cuts have spent $839 billion on stock buybacks.

These buybacks didn’t create more jobs, increase wages, or grow the economy — but they did juice CEO pay

Nothing trickled down to workers

Robert Reich

Today I saw this most welcome post from Mr. Reich on LinkedIn and cheered so loud that I woke the entire house. Well, maybe not the entire house, but the cat and dog certainly were looking at me sideways. Mark this date on your calendar, as Reich has finally endorsed Trickle Down Economics. It is right there in black and white!

Obviously, Reich is upset that these dastardly CEOs got rich on stock buybacks (more class envy BS). You’ll notice, however that he only uses the year 2017 and only the Trump tax cuts. According to Reich’s post, he believes corporations have never engaged stock buybacks prior to 2017, when Trump took office, nor received a corporate tax cut under any other administration.

He then goes on to claim that these buybacks didn’t create more jobs, increase wages or grow the economy, but did “juice” CEO pay. I find it hard to believe that Reich would know whether or not jobs were created, wages were increased, or the economy grew. Is there some sort of data that he is pulling this information from? And I am assuming he is referring to internal jobs, wages and economy at those particular corporations. The truth is, there is no way in hell that Reich would ever know if any of those things did or didn’t come to fruition. Based on his class envy assessment, you would think the CEOs refused to spend a Nickle of the extra money, brought it all home and shoved it into a mattress, because mattress stuffing is always a great investment.

How much of the stock buybacks bolstered stock prices that went toward retirement accounts? How much of that extra money the CEOs made, worked its way back into the economy in the form of purchases, like homes, cars, luxury items, vacations, college tuition, home improvements and many other purchases that supported businesses and their employees? Probably millions of dollars between all 15 of those CEO, as well as other executives within those companies, like VPs, COOs, CIOs and the like.

We all know the term Trickle Down Economics was coined by the left when Reagan took office back in 1981 and fixed an economy that was, thanks to Jimmy Carter, decimated by the same type of inflation and high interest rates we are living with today. Reich stated clearly in his post that nothing trickled down to workers, which would mean that he believes it should have under normal circumstances. There it is folks, a full-blown endorsement of Trickle-Down Economics from the man who has spoken against it since 1981.

I disagree with Reich on everything in his post, with the exception of his endorsement. And that is ok…baby steps.