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In its crudest form trickle down means putting all the money in at the top end with the expectation that the over flow will find its way down to the bottom or that those at the top will throw some crumbs down to those lower.

The reality is that no business is going to give away any of their money if they don't have to.

The interesting reality is that there was a period where to some extent it did seem to work. The problem is that it was poorly identified. The thing is that when unions and workers were strong enough they could demand their share.

The union employer strength was the primary driver of trickle down. It worked because it was never a matter of the employer being generous, it was that the employer had no other option. Successive Liberal governments mainly the Howard disgrace hobbled Unions in the workplace which effectively removed the main driver of the trickle.

Today there is no trickle, the drivers for it are gone.

Expecting business men to give away money out of generosity is not going to happen.

Sir Grappler Truth Teller OAM wrote on Aug 10^th, 2017 at 9:59pm:

crocodile wrote on Aug 10^th, 2017 at 11:48pm:

. It's not the result generous bosses having moments of benevolence.

But this has been almost the whole story of the Liberal party's economic strategy for the last 30 years ?

How could it possibly be wrong ?????

"Profits are reinvested which grows productivity."

No - they are not..... only in a very limited sense, and only after the real profits have been removed offshore or into other safe havens (such as ongoing tax concessions) for the benefit of the (primarily) major shareholders, who always constitute a tiny percentage of the overall shareholders.

The only 're-investment' of profit is where there is a clear avenue for further profit, and thus that is not a genuine investment in this nation or its resources procurement or anything else - but is only an investment in gaining profit. NO organisation re-invests its profits unless it can see a clear path to further profit.

The facts are there on the table with the tax recoupment from major corporations that offshore their profits.  Once that is all gone offshore, the begging bowls come out for more 'investment' that procures next to nothing for the nation as a whole, but only for those who are on 'the inside' with major shareholdings.  The 'mums and pops' get a pittance but imagine they are big wheels in business... (sighs).... while 80% of the shares are held by ten people...... and thus 80% of the profit goes to those ten people....

The only 'productivity' you are discussing is the productivity of shareholder gains.... and unless some major changes are made to 'investment' in this nation, it will continue to slide downhill at a rapid rate, since such current investment does not produce any lasting effect HERE and NOW, or in the foreseeable future.

WHERE is the productivity in any other sphere than in shareholding?

Yeah - I studied Economics years ago.... doesn't mean I accept all the rubbish that is trotted out as economic orthodoxy.

crocodile wrote on Aug 10^th, 2017 at 7:17pm:

The increase in productivity without pay rises in the past five years is a strong argument against this. Company profits have soared and these have not been passed on to the ones whose hard work has delivered these profits: the workers.

Bam wrote on Aug 11^th, 2017 at 10:57am:


That's why it is wrongly labelled and should be called "The trickle up effect".

Bam wrote on Aug 11^th, 2017 at 10:57am:


Sorry to break the bad news to you but total factor productivity has been in free fall for the last five years. It may have increased in Kickatinalong but not here in Aussie.

More bad news for you. As of 3rd Qtr 2015 corporate profits were back at 2004 levels. And that's not even inflation or GDP adjusted.



There were two good quarters this year. As if that makes up for 11 years of zip. It's already been explained. Wages follow MF productivity, not profits.

I predict the wage rises will come around 2019 , coincidentally when a change of government occurs