Conexión San Ángelo / Staff report

SAN ANGELO – The Tom Green Democratic Party’s final “The Truth About” series had as its guest speaker, Dr. Sahit M. Kara, professor of Economics at Angelo State University, whose presentation was titled, "The Truth about Trickle Down Economics."  Dr. Kara’s presentation was held September 14 on the 3rd floor of the Stephens Central Library.

Dr. David Currie, Ph. D., and current Chair of the Tom Green County Democratic Party, was interviewed by Conexión afterward as he gave a brief background on what Reaganomics was, and what the Democrats alternative was to that economic philosophy.

“Reaganomics which was started by Ronald Reagan, was this concept that if you cut taxes on the wealthy, you deregulate business. In turn, rich people will make more money and that money will trickle down through the economy and benefit everyone,” said Dr. Currie. 

Currie further commented that a Savings and Loan crisis occurred (the savings and loan crisis of the 1980s and 1990s was the failure of 1,043 out of the 3,234 savings and loan associations in the United States from 1986 to 1995: the Federal Savings and Loan Insurance) https://en.wikipedia.org/wiki/Savings_and_loan_crisis

“There is such thing as a savings and loan anymore because of the mortgage crisis which created the deregulation” Currie said. 

Then, President Clinton turned that around; in paying down the deficit, we had a growing economy. President Bush tried the same thing. “Let’s deregulate our businesses and cut taxes for the rich.” Currie stated that we ended up with the worst recession as 2007-2008 were horrible.” 

Currie commented that now, President Trump after Obama brought the economy back and the Stock Market, wants to cut taxes for wealthy, deregulate business. “This hasn’t worked twice, so why do people think it’s going to work the third time?”   

In one of Dr. Kara’s slide chart presentation, it showed that 20 percent of the people in this country have 85 percent of the wealth and that’s all because of Reaganomics, stated Currie.  

After War World II, growth and wages were neck-and-neck together. After 1980, wages started flat-ling while income continued to increase. The working man started losing when Trickle Down Economics became the economic philosophy of our country, according to Dr. Kara’s presentation.

The interview concluded by asking Currie what was the Democratic Party’s alternative solution to Reaganomics.

“The Democrats didn’t continue this tax cutting thing, in fact we raised a few taxes, especially on the wealthy.” “That’s how you got Obamacare,” said Currie who believes that this brought a “sense of fairness to the economic system, or tried to anyway.”

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