“Trickle-up economy”



By Dale E. Landrith Sr.

Currently in the news is the effort in the U. S. House of Representatives to impeach the President. They tried Russian collusion and that did not work so well. That has given way to a Ukrainian phone call. With the full transcript of that call having been released it is likely like this impeachment effort will have the same result. Those leading the impeachment effort hold their hearings in secret. Why? Is it so that they can gather information damaging to the President? It is more likely that they do not want their complete lack of impeachment supporting facts made known to the public.

The true mystery is that they do not try to impeach President Trump on grounds that he is “racist,” “misogynist,” “against the middle class” and “against the poor” as he has been labeled since his election. Is President Trump a racist? If that is true then he must be as incompetent as some would make him out to be. Data included in the U. S. Census Bureau statistics show that the Trump economy has had the greatest impact on minorities. Historically African-American unemployment has been twice that of white unemployment. In these statistics we observe that currently that number is 1.6 times with all minority unemployment at record lows. In addition, the Washington Post recently reported that 4.5 million out of 5.2 million, or 86 percent, of the new jobs created since Trump’s election have gone to minorities.

It is also well reported that President Trump discriminates against or despises women. Mary Margaret Olohan states in the Daily Signal that, “Among full-time, year-round workers, the number of women increased by 1.6 million and the number of men increased by about 700,000 between 2017 and 2018.” The median real income for households led by women with no spouse rose 5.8 percent from 2017 to 2018. There was no change for married couples. In addition, the poverty rate for women-led households diminished from 26.2 percent to 24.9 percent.

President Trump is a billionaire. Democrats would have us believe that as a result he cannot relate to nor does he understand the plight of the poor. However, the Census data shows that those people living in poverty declined by 1.4 million people just in 2018 alone in conjunction with the poverty rate being reduced from 12.3 percent to 11.8 percent. This is the lowest it has been since the 2007 financial crises.

How did America become the most prosperous nation on the face of the Earth? The names of the poor, the middle class and the rich keep changing. Upward financial mobility has been the characteristic of the U.S. economy. Some of those who want to be the Democratic candidate in 2020 for president (Warren, Sanders, etc.) would have us believe that the poor are getting poorer and the middle class is shrinking. Economist Mark J. Perry indicates that the middle class has in fact shrunk, but not for the reason some candidates would have us believe. Since 2007 the middle class — defined as those earning $35,000 to $100,000 in inflation-adjusted dollars — has fallen from 43 percent of the population to 41.7 percent in 2018. At the same time, the upper income level increased from 27.7 percent of the population to 30.4 percent. The answer is upward financial mobility.

It has long been said that the best antidote for poverty is a job. Trump’s economy has produced record job growth. How does one participate in upward mobility? As unemployment decreases to record lows, the competition for workers forces employers to offer better wages. This is trickle-up economics. As those in the middle class move up to upper income jobs those in lower reaches of the economy move up to fill the vacancies.

Dale E. Landrith Sr. is among a group of authors of the conservative column “Another View.” He came to Maine in 1982 to manage Manset Marine Supply in Southwest Harbor, which he eventually came to own. He lives in Camden.

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