Re: the Jan. 3 letter to the editor "If not trickle-down economics, then what?"

This is a preposterous claim. So-called "trickle-down" theory assumes that benefits to the wealthy will flow to lower-income households through spending that creates demand or investment that creates jobs. This is entirely different from direct investment in job creation, such as through infrastructure programs, or direct payments that benefit middle-class and low-income individuals and households.

A recent example of a direct transfer was the temporary cut during the recession in the employee-paid portion of the Social Security payroll tax, which put additional disposable income directly into the pockets of workers who could then spend the money, stimulating demand. Calling this "trickle-down" does not make it so.

It is the writer of the letter who suffers from "confusion about trickle-down economics," not those who justifiably criticize the recent tax legislation for misplaced its priorities.

David Wohl


Disclaimer: As submitted to the Arizona Daily Star.


Comments may be used in print.

Load comments