Joe and Wendy are struggling, but they are young, and know it is part of life. How can one learn to be stronger without struggle?
So Joe and Wendy save up $25.00. The want to come out to their favorite club and see their friends, who are mostly in the same boat (learning about life, aka 'broke as hell').
The club knows that if someone only has $25, and $10 of it goes toward their favorite 'get away for a while' substances, there is not much left for door entry or a beverage. Maybe...1 drink, shared.
Most night clubs would not even attempt to draw the Joe's and Wendy's of the world, even though they make up 90% of potential customers. Like most corporations, these venues would not waste time with small fry.
One club is different. It caters to, embraces and actively market to such family units.
So on a Tuesday, 1200-1600 Wendy and Joe's show up with their $5 average bar sale. NOW you got some buying power. Time to share the lucre!
From that night's revenue, the club is NOW able to support 35 families with a living wage, and pay taxes that help support the entire system. Joe and Wendy's small contribution, combined with the buying power of thousands of like situated consumers, "percolated up" to Frank in Marketing and Promotions, enabling his ability to buy diapers and formula for his new babby.
This is the only way 'trickle down' economics will work, it has to trickle up; yet, can only go so far and only in a SMALL business environment.
TDE is a grand idea, but it does not work. The wealthy more easily rationalize 'keeping what is theirs', rather than reinvest in his labor staff.
Let's use another example. A corporation came into a windfall not projected as revenue. Should the board give a company a new employee break room in appreciation and to increase worker satisfaction, or, they purchase a corporate jet. Or should they distribute a slight divident to the stockholders first? If I sold the business to a larger, more structured corporate interest (like, say, Harrah's, Inc), I forever lose the ability to arbitrarily reward staff for exceptional performance during an event. I'm taking my money and headed for the beach!
Instead of going to the workers, it would be going instead to cover the profit needs of a faceless leech umbrella corporation in another state or country. They don't care about the employees other than as a number on a spread sheet under COST. They want ALL THE REVENUES!
TD won't work due to the greed factor inherent in humans and the demands of multi-national overhead costs. The real economic engine lies within the consumer base, not the boardroom.
Trickle up, my man.
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How TDE works.
Date: 8/11/12 12:40 (UTC)So Joe and Wendy save up $25.00. The want to come out to their favorite club and see their friends, who are mostly in the same boat (learning about life, aka 'broke as hell').
The club knows that if someone only has $25, and $10 of it goes toward their favorite 'get away for a while' substances, there is not much left for door entry or a beverage. Maybe...1 drink, shared.
Most night clubs would not even attempt to draw the Joe's and Wendy's of the world, even though they make up 90% of potential customers. Like most corporations, these venues would not waste time with small fry.
One club is different. It caters to, embraces and actively market to such family units.
So on a Tuesday, 1200-1600 Wendy and Joe's show up with their $5 average bar sale. NOW you got some buying power. Time to share the lucre!
From that night's revenue, the club is NOW able to support 35 families with a living wage, and pay taxes that help support the entire system. Joe and Wendy's small contribution, combined with the buying power of thousands of like situated consumers, "percolated up" to Frank in Marketing and Promotions, enabling his ability to buy diapers and formula for his new babby.
This is the only way 'trickle down' economics will work, it has to trickle up; yet, can only go so far and only in a SMALL business environment.
TDE is a grand idea, but it does not work. The wealthy more easily rationalize 'keeping what is theirs', rather than reinvest in his labor staff.
Let's use another example. A corporation came into a windfall not projected as revenue. Should the board give a company a new employee break room in appreciation and to increase worker satisfaction, or, they purchase a corporate jet. Or should they distribute a slight divident to the stockholders first? If I sold the business to a larger, more structured corporate interest (like, say, Harrah's, Inc), I forever lose the ability to arbitrarily reward staff for exceptional performance during an event. I'm taking my money and headed for the beach!
Instead of going to the workers, it would be going instead to cover the profit needs of a faceless leech umbrella corporation in another state or country. They don't care about the employees other than as a number on a spread sheet under COST. They want ALL THE REVENUES!
TD won't work due to the greed factor inherent in humans and the demands of multi-national overhead costs. The real economic engine lies within the consumer base, not the boardroom.
Trickle up, my man.