Trickle-Down Economics Fails a Sophisticated Statistical Test
It’s common to warn in statistics that correlation doesn’t imply causation. But by combining the Mahalanobis distance technique, difference-in-differences analysis, and so on, Hope and Limberg were able to get at causation. Their bottom line:
“We find that major tax cuts for the rich push up income inequality, as measured by the top 1% share of pre-tax national income. The size of the effect is substantial: on average, each major tax cut results in a rise of 0.8 percentage points in top 1% share of pre-tax national income. The effect holds in both the short and medium term. Turning our attention to economic performance, we find no significant effects of major tax cuts for the rich. More specifically, the trajectories of real GDP per capita and the unemployment rate are unaffected by significant reductions in taxes on the rich in both the short and medium term.”
I copied and pasted from the Bloomberg page and thus the above quote remains in a kind of copied format that I cannot change without struggling to change the template of this blog page so I leave it as is....the jumble of statistical analysis references are far beyond the mere Grad school class I took in Statistics and it all appears that one must necessarily plug data into a computer generated program to dissect the data using these models of interpretation. Generally, the point is that statistics can be "relied" upon to furnish both truth or confounded displacement of fact. Who knows which is which when you have no experience with using statistical data or statistical software to calculate such data and also without having access to the data collection and for which firm or entity the research is being conducted and primarily--funding the research. However, it is without data that it is very easy to ascertain that TRICK DOWN theory is a cascade of torrential disaster for the majority and a huge boon to the very top of the pyramids of power. The recipients of the largesse become intolerantly psychopathically murderously smug in their behavior and mannerisms when they TELEPORT a victim and expect to be entitled to receiving more free boons from the endless hand-over of the economy into the greedy aspirants of absolute power that have been enriched by these policies for decades. They keep referencing the Ray-gun years as being wonderful and reminiscent of when America was "great" and the ensuing damage has turned America into a shell of economic near-collapse without a foundation to bolster it's debt and endless deficit.
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