There’s a story of how in eastern Siberia in past centuries, where the people often partook of the fly agaric mushroom, Amanita muscaria, for its mind and mood altering properties, the rich often hoarded the supply and the poor had to do without until the rich threw a party such as a wedding, at which event they could be counted on to ingest some mushrooms and, when they ventured out to urinate, the poor would somehow capture the rich people’s urine, which was still loaded with the psychoactive ingredient, and the poor would drink it for their own trippy experience. The difference between that old story and modern trickle down economics is that in the story, if true at least to some extent, the peasants actually did reap some kind of reward finally. No such evidence exists for the modern economic theory.
Gary “Hands Up” Cohn, Director of the National Economic Council.
It’s a good line to trot out as cover for tax cuts for the rich, apparently, and that’s why to sell the latest tax cut package it’s been used again by current presidential administration flacks like Gary Cohn, Director of the National Economic Council and former Goldman Sachs executive. The package passed the U.S. Senate on December 2, and now it awaits reconciliation with a similar package already passed by the House of Representatives. Republican leaders in Congress hope to have the bill ready for the president to sign by Christmas. Happy Holidays! Or Merry Christmas, if you prefer that with your egg nog.
Besides selling the bald-faced lie that the tax package is somehow supposed to benefit any other economic group but the wealthy, through the voodoo of trickling down, Republicans are cramming in several other things before they tie up the package with a nice bow. One is the repeal of the individual mandate from the Affordable Care Act, which will leave 13 million people uninsured. Another is the authorization of oil drilling in the Arctic National Wildlife Refuge in Alaska. And a third is the destruction of the Johnson Amendment, which will be like a Citizens United watershed moment for right wing churches, allowing them to flood political campaigns with money from their congregations without endangering their tax exempt status. Of course, other churches, left wing or neutral, will be able to do the same, but it is the religious right that has long scorned the Johnson Amendment as an impediment to its agenda. Indeed, all three of these additions to the tax package will scratch itches conservatives have been worrying over for years or decades.
There are other items added to the basic tax package that will satisfy many conservatives, though surprisingly not all, and not because the tax cuts don’t go far enough, but because they go too far or are misplaced. At a presentation before an auditorium full of CEOs in November, Gary Cohn stressed that the corporate tax cuts in the new package should spur investment, and to prove his point he asked for a show of hands from those present who would increase their company’s investments. A few raised their hands, but not the majority, and certainly not as many as Mr. Cohn apparently expected, because he asked “Why aren’t the other hands up?” before quickly moving on to other business. CEOs elsewhere have also questioned the necessity of the corporate tax cuts, which is to their credit considering how greedily corporate America generally behaves.
No, the corporate tax cuts in the latest bill are intended to benefit the financial sector, Wall Street. That’s why people like Treasury Secretary Steven Mnuchin and Gary Cohn, creatures of Wall Street, like the bill and defend it. They understand it. It means more money for themselves and their colleagues. They talk about how it will help producers of things produce more and better things, and how it will improve life for the lower orders. They believe none of that, nor do they understand it. They never produced anything. They have no interest in producing anything. They can barely conceal their contempt for people who produce things, and particularly the ones who get their hands dirty doing it.
From the 1940 Disney film Fantasia, the Chinese dancers of Tchaikovsky’s The Nutcracker balletenvisioned as mushrooms very much like the fly agaric kind.
People like Mnuchin and Cohn and the Supreme Leader who appointed them understand only money, meaning the more of it for themselves the better, especially if it means less for everyone else. To move economic metaphors from the latrine to the marina, from trickle down to a rising tide lifts all boats, the Wall Street Greed Heads could follow a better model than trickle down by investing in the bottom, the rising tide. They don’t understand that, however, nor can they spare what little empathy they have for it, and that leaves 99 percent of the country coping with the trickled down policies the Greed Heads do understand, which is all for the few, the one percent.