Trickle-down economics? It’s a scam, confirms OECD

Extracts from an article by Linda McQuaid

The following comments are extracted from an article by Linda McQuaig which first appeared on 10 Dec 2014 *, and is concerned about an OECD report ** which analyses the effectiveness of trickle-down economics.

“Essentially, the OECD report reveals the immensity of the trickle-down scam, which the report shows has not only failed to foster economic growth as promised, but has proved to be an overall killer of economic growth.

“And the report puts actual numbers on how much growth has been reduced as a result of trickle-down. In the case of Canada, the reduced economic growth amounts to about $62 billion a year — which economist Toby Sanger notes is almost three times more than the estimated annual loss to the Canadian economy of lower oil prices…..

“In the wake of the 2008 financial collapse, even the mainstream international economic organizations — including the IMF and the World Bank — began releasing studies with findings that seemed to contradict their organizations’ longstanding support for neoliberal orthodoxies.

“With its report this week, the Paris- based OECD has gone farther still, stating unequivocally that its research shows that policies favouring the rich haven’t just failed to create overall economic growth, they have actually “curbed economic growth significantly.

“Indeed, according to the OECD, the dramatic increase in income inequality – now at its highest level in 30 years – is the ‘single biggest impact’ preventing economic growth. “

Sources:

* http://www.ipolitics.ca/2014/12/10/the-gap- between-rich-and-poor-is-killing-growth/
http://rabble.ca/columnists/2014/12/trickle-down-economics-its-scam-confirms-oecd

** OECD report (9 Dec): Trends in Income Inequality and its Impact on Economic Growth

Linda McQuaig has been a reporter for the Globe and Mail, a columnist for the National Post and Toronto Star, and is the author of seven best sellers.