In the 1980s, US president Ronald Reagan and his mate over the Atlantic, British PM Margaret Thatcher, barked on about the virtues of trickle-down economics.
How big business is giving you the shaft
Today, US President Donald Trump and his mate over the Pacific, our own PM Malcolm Trumble, are still extoling the virtues of trickle-down economics -- which is no more likely to work now than it did in the 1980s.
For the mortals among you, trickle-down economics involves the bizarre notion that if the rich keep getting richer, they pass on more to the rest of us.
One implication of this notion is that if big businesses are given tax cuts, they will not only employ more people, but pay them more, too!.
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Let’s examine these two propositions for a moment.
Despite 22 years of economic growth, which is the best in the OECD, the top one percent of Australians today are wealthier than the bottom 70 percent. In the wider world, despite several economic booms during the time of Reagan and since, the top one percent of the world's population control 50 percent of the planet's wealth.
Trickle-down economics is nothing short of bullshit, communicated by the wealthy and their supporters to preserve the status quo.
The proposition that tax cuts will lead to lower unemployment and higher wages is also questionable. Some businesses will certainly employ more people as they grow, but a greater number will not. More importantly, big business is more likely to pocket the tax saved.
Profits in Australia have soared over the past 12 months. Despite this, wages have been stagnant.
This hardly suggests that further boosting the coffers will benefit workers. Indeed, according to a recent report released by Fairfax, cutting tax rates may not even benefit business, give that one in five of the biggest ones did not pay tax last year, despite growing profits.
It is said that unions are selfish in their defence of workers and, more often than not, they are. But business is no different. Business is extremely selfish in doing whatever it can to not only maximise profits but also, through their unions -- like The Australian Industry Group -- fight against any pay increases, claiming that they cannot afford them.
Trickle-down economics is absolute bullshit and the Turnbull Government, like all the other self-serving idiots who have promoted it, know it is bullshit.
This is clearly demonstrated when the Prime Minister and Treasurer go on about the high tax rate in Australia when compared against the UK and USA, among other things. What they fail to tell you is that while our raw tax rate is higher than either of these countries, our effective tax rate is significantly lower.
The effective tax rate is the rate of tax after taking into account the potential for deductions, which is significantly higher in Australia.
Business is not doing anything for the good of the nation, or their workers. They are doing everything in the best interests of their shareholders, as is their responsibility in law, as laid out by ASIC.
Big business is as selfish as any other segment of the community and a whole lot less ethical.
How ethical is it for a CEO to be paid millions of dollars a year in salaries and bonuses, while having their lawyers argue in the Fair Work Commission that the business cannot afford pay rises? Are these the people you think will pass on the benefits of tax cuts by way of higher wages?
If you believe they are and if you believe trickle-down economics works, I want some of whatever it is you are smoking.
Let's stand up and say what we think about these greedy pricks and persistent liars.