[…]commonly referred to as “Reaganomics” or supply-side economics, were based on trickle-down theory. The idea is that with a lower tax burden and increased investment, business can produce (or supply) more, increasing employment and worker pay.
I have a tale illustrating why the trickle-down theory is bullsh@t. Let’s begin with with an introduction: meet The EA* and The Princess. They own a “mom-and-pop shop” in a Midwestern college town.
About 3 years ago, The EA and The Princess decided to move back to The EA’s hometown, so The EA could work for his wealthy dad. Both The EA and The Princess haven’t held many jobs–mostly because they haven’t had to. The Princess’s family owns a car dealership and The EA’s family owns a venture capital firm.
According to LinkedIn, The EA has only worked for 3 years out of the 35 he’s been alive and, upon returning to his hometown, was immediately appointed vice president of his dad’s firm. But what would poor Princess do? How would she occupy herself while her beloved hubby was hard at work–when he didn’t have a squash, golf, or haircut appointment?
The Princess applied to work part-time in a little retail store downtown. The meager pay and hours weren’t a problem for her–she had EA’s money to spend and a $900,000+ house to renovate.
After The Princess had worked in the retail store for 1.5 years, the owners announced they were selling the business.
“But, my devoted EA, ” the Princess wailed to her husband. “What will I do? You’re so busy working those 30 hours a week at your dad’s company.”
“Oh, my poor Princess,” said The EA, holding her close and kissing her head. “Let me buy this store for you. Then you’ll have something to do when there isn’t a dinner party or vacation to plan.”
The deal was as good as done. The EA and The Princess bought the store.
After owning the store for about 2 years, The Princess was on the verge of giving birth to her 1st little prince. For the next 5 months, she rarely dropped in. Was she working from home, you might ask? Not quite. She was paying a manager a low hourly wage to run the entire store, deposits, marketing, inventory, payroll, and all.
But wouldn’t that be a risk? To let your employee run the entire store? Well, The Princess couldn’t be bothered with that. She was too busy enjoying her long maternity leave and vacations to the Caribbean, the south of France, and Cape Hatteras.
And you know what they say: “When the cat’s away…”. And, oh my, did Manager Mouse play!
(To be continued…)
*EA = Entitled @sshole