Trickle Down Should Not be the Only Policy

First let me put in my disclaimer: I am not an economist and my theories and opinions are just that, my own.

I do not believe in the Trickle Down economic theory as a stand alone policy. My reasons are purely observational. Not much seems to trickle down and certainly not quickly. After everyone along the way has taken their "cut" there is not much left over for the guy or gal at the bottom. I think this is illustrated a little by the failure of banks to work with borrowers to rework mortgages for those in trouble.... the corporations just will not voluntarily give up any profit to help keep a loan viable. Instead of thinking that something is better than nothing, they take an all or nothing stand and in my opinion this is just stupid. Even if I were a shareholder of the bank, I think I would rather see adjusted earnings forecasts go down than a complete failure of the bank because of its inflexibility. Remember what I said about how banks used to operate, it was a person in the community that the bank knew personally and he would make a judgment based on what he knew about the person -- and that is not always numbers on an application.

Now an example of Trickle Up economics can be illustrated but it too has its flaws, especially if excess funds are put in savings instead of being spent. But even that would have its benefits, since it is savings that become the basis for bank funds available. My example is the last stimulation refund/tax rebate that was done. That hit the retail numbers pretty quickly and it was clear that it was needed (or a lot of it would have disappeared into savings accounts.) So this is the basis for my belief that Trickle Up needs to be combined with Trickle Down for a more balanced approach to resolving our economic woes.

Loan workouts need to become a priority and soon. People can not wait for the bailout money to trickle down and there is no pressure on the lenders to do anything but wait for the government to bail them out once again. Foreclosures are bad, finding solutions that avoid foreclosures whenever possible are good. We need to break the cycle and that requires interference -- a bold step and bound to be unpopular with corporate America but it is the morally right thing to do. Forget about blame -- so what if someone got into debt too deeply. Let's do what America does so well -- lend a hand and help your neighbor get back up.

You know, the attitude that everyone is responsible for themselves is not bad but it should not be absolute. Circumstances, luck, etc. -- think of the Nationwide Insurance advertisment "Life comes at you.." -- we need to be more compassionate, forgiving, tolerant and less judgmental, and that is not being gullible. Who knows, one day you or I might need that helping hand. Let's stop turning our backs on the less fortunate. One person at a time we can change the country.

Republican policies are not all bad and Democratic policies are not all good. Compromise, the willingness to work together to solve problems - what both candidates have promised to do -- is what we need. The give and take of good discourse is necessary but at the end of the day, be willing to give something a try.

We have a responsibility as citizens to be active participants in our government. This can be as simple as voting, not just in the national elections but in the local ones too. Tip O'Neill said it best: "All politics is local" so write that letter, attend a town council meeting and don't be afraid to speak up, go to that school board meeting, make an appointment to just chat with your county elected official, meet candidates and talk to them about what is important to you. Teach your children the importance of the freedoms that we have and voting is the most important. Don't be the silent majority about things that matter to you.

You know we are so fortunate here in America, there are two very decent individuals running for the top elected office in our country. Let's honor them by voting on November 4th!