Today, Democrat House Representative Jerry Nadler, who’s name you may recognize for his role in one of the greatest scandals in United States history, posted this on his Twitter feed:
This is a great example of what Democrats don’t understand about the reality of trickle down economics and why they say it doesn’t work.
With trickle down economics, it’s not a question of whether or not it works. It just is. It’s simply a phrase to refer to the phenomena of how one act causes subsequent, related acts.
In this case, people can go on “rent strike” or not pay their rent all they want, but all they’ll be doing is causing the property owner to miss their own rent or mortgage. And that will mean the bank potentially forecloses. Then the property is lost and sold, in foreclosure, to a new buyer, who may very well throw out the existing tenants who aren’t paying rent.
Democrats always treat the land, or building, owner as the evil master who keeps trying to collect rent. But that’s just a piece of a much bigger puzzle.
The owner usually also owes money to somebody (usually a bank), and when the renters don’t pay, then they can’t pay the bank.
This is not hard to figure out, if you think it through. But it’s a great example of how Democrats think statically, and not dynamically.
It’s kind of like when they decide to raise taxes on business. It never occurs to them that the businesses will simply raise their costs to pay the extra taxes, which means the consumer will end up paying more for the goods, which could affect the business.
If the prices go too high, consumers may stop paying, and then the business may have to lay people off.
For every action, there are many reactions. This is what trickle down economics is all about.
Sadly, this is a far too typical example of why Democrats don’t understand economics.