Rush Limbaugh was never given a job by a poor person. So how do we get out of this economic mess? Enlarge the holdings of the rich.
That was the theory behind Reagan's economic policies. Bush took these policies to an even further extreme.
It worked half way. The rich do have a lot. Apple is sitting on $78 billion in cash. Other corporations are hoarding cash. They have over $1 trillion in reserves now. Rich individuals now have an ever greater share of total wealth and an ever greater share of total income.
But the other half, that prosperity for others, hasn't panned out. And why would it? Am I going to run out and build a production facility simply because I have cash, supposing I was a rich person or a corporation with lots of money? Not if everybody is poor and there's no demand for the product I might produce. I'm not here to create jobs. I'm here to make profits. A business isn't a charitable organization.
Of course it's easier to see in retrospect. The Reagan theory sort of seems plausible at first blush. In my view we have to allow the results to inform our theories. The Reagan era has ushered in a severe economic down turn. Bush, who doubled down on Reagan policies, has produced economic performance that is the worst since the great depression by many measures. David Frum asks, are you too closed minded to allow history to effect your thinking? What can I say? I believed it too. But the results must be considered.