Trickle Down Economics And That Time When The Banks Saved Us

Trickle down economics. It's not a new idea, but it's the most recent one politicians have wanted to listen to. Even the IMF has said that it doesn't work, but because the US Government is renewing it's indoctrination program on the matter, Australia must copy whatever obvious mistakes they make.

There was an article yesterday with the title Republicans don't understand: Tax cuts don't spur economic growth. It's cute that the people at NBC News think that Republicans don't understand this, but it's completely incorrect. Not only do they fully comprehend it, but there's another extremely important thing that they also understand:

If you repeat the lie often enough, it becomes the truth

This normally works, but there was a recent case in Australia where it actually failed. An Indian company called Adani wanted to build a massive coal mine in Queensland (using no small amount of public money), but they couldn't get approval.

Every now and then, they'd come out with a press release saying that the project was going ahead. If the public believed it was fated and there was nothing that could be done to stop it, then there would be no resistance. It could have worked. It should have worked. But it didn't. The federal government had egg on their faces and would miss out on the reciprocal favours from the public private partnership.

Why Did The Lie Fail?

Adani (along with the Government of Australia) may have been able to succeed in pulling the wool over the eyes of the general public, but they couldn't fool the people who were scrutinising the deal behind the scenes - the banks.

Yes, it was the banking sector that saved Australia from a future built on the worst fossil fuel. They may be willing to embrace wilful ignorance when it comes to destroying the economic prosperity of a nation (it's coming, folks!), but they're not willing to risk the dividends paid to their shareholders.

When the next economic crisis comes, investors will become bearish and tuck their money under their mattresses. But there's one group of investors whom the banks _know_ will always keep the money flowing - green investors.

How do I know this? Because I talk to bankers.

Does Trickle Down Become Trickle Up When You're Down Under?

That's a very deep question and one that's too profound for my brain to handle. However, Australia's Treasurer certainly thinks so as he's backing the corporate sector in their calls for lower corporate tax which they need so that they can create jobs. Perhaps they never went through the re-engineering process to fix the Y2K problem? It would explain why they're acting like it isn't 2018 if their calendars are 100 years behind.

If having more money led to more jobs, we'd all be working for the banks. The truth is that having more money leads to higher dividends for shareholders (and executive bonuses). No new jobs.

The lie needs to be repeated at least one more time to prove me wrong.