Essay on WA2 SOC 102

Submitted By angeliant
Words: 421
Pages: 2

Trickle-down solutions implement tax cuts and other benefits to businesses and wealthy individuals under the idea that these parties are the captains of industry and the more wealth they have, the more they will spend and promote growth in the economy. Trickle-down solutions hurt the disadvantaged in by reducing taxes on the wealthy which increases the inequality gap between the “haves” and the “have-nots.” People who are fortunate become even more fortunate while the less fortunate fall behind them. Reduced tax rates means less income for the government resulting in a greater national debt. Government officials tend to go for trickle-down solutions because they come from the business class, meaning they believe that what is good for business is good for the United States. Another reason is that the government officials are more likely to hear arguments and obtain contributions from the powerful. Unfortunately, these plans are not very effective in fulfilling the promise that benefits will be profitable for the poor. The tax credits produced do not necessarily mean that companies will increase wages or hire more workers.
The U.S. corporations have shifted more substantial assets overseas with the idea to increase profits. Resources necessary for manufacture and production tend to be cheaper in many other nations rather than the United States. The U.S. can increase their profits by moving their production facilities from high-wage situations to low-wage nonunion countries. The foreign production costs are lower because of labor safety law and environmental protection laws are much more negligent than in the United States.
The shift in production from the United States to other…