Susanna Krizo on economics…

And now for something completely different: economics…

I found this an interesting quote, that was posted on FB by Jason Dye, who blogs here on left cheek. It’s from Susanna Krizo, whose new book “Essential Inequality & Social Justice in an Unjust World”, which will be out on Amazon at the end of this month, is going to be a primer on economic justice issues. The quote is on why the giving money to the pockets of the poor works better than tax breaks for the rich:

The neoclassical theory of economics (otherwise known as trickle-down) is based on the idea that demand and supply would always be balanced if the market was free to do what it does best; the gov’t is what causes the market to be imbalanced. But here’s the catch: the neoclassical theory doesn’t include human need. Those who cannot translate their need into demand are excluded from the theory, and life in general – they just don’t exist. The theory does not address poverty, old age, illness, other than with a withering announcement of the poor as lazy. By giving more money to the wealthy, our economy becomes lopsided, (since it removes demand) until supply engulfs demand, and the economy grinds to a halt – which was what happened in 2008. Human need cannot be transformed into demand without money, which is what the Keynesian theory recognized. To get the economy going, we need more people who can balance by demand the already bloated supply section. This is not done by giving more money to the wealthy, but to the poor and the middle class, who put the money right into the economy, instead of hiding the money in overseas tax havens. (via Jason M Dye)

I’m not an economist, but the whole ‘tricle down’ idea has always seemed nonsense to me, and as a Christian I don’t see any justification for favoring the rich over the poor. That’s just not compatible with the teachings of our Lord Jesus….

(Maybe running an empire isn’t compatible with following the teachings of our Lord either, I don’t have my mind made up about that yet…)

what do you think?



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