1 00:00:01,600 --> 00:00:04,840 Speaker 1: Hey, everybody, it's me your old pal Josh, And for 2 00:00:04,920 --> 00:00:07,880 Speaker 1: this week's s Y s K Selects, I've chosen how 3 00:00:07,920 --> 00:00:11,239 Speaker 1: trickle down economics works. It sounds boring, but it will 4 00:00:11,280 --> 00:00:15,440 Speaker 1: actually knock your socks off. It's so interesting. And maybe 5 00:00:15,920 --> 00:00:18,800 Speaker 1: Ronald Reagan will make an appearance. Who knows. You like 6 00:00:18,960 --> 00:00:28,520 Speaker 1: to listen and find out? Enjoy. Welcome to Stuff you 7 00:00:28,520 --> 00:00:37,720 Speaker 1: Should Know from House Stuff Works dot com. Hey, welcome 8 00:00:37,760 --> 00:00:40,479 Speaker 1: to the podcast. I'm Josh Clark, and there's Charles W. 9 00:00:40,600 --> 00:00:44,919 Speaker 1: Chuck Bryant and Jerry and they're snickering and tittering, and 10 00:00:45,000 --> 00:00:48,400 Speaker 1: that makes this stuff you should know. Yeah, we've got 11 00:00:48,400 --> 00:00:53,479 Speaker 1: sidetracked before. We talking about things that trickle. Names, names 12 00:00:53,560 --> 00:00:56,560 Speaker 1: that trickle. Yes, like the famous race car driver Dick Trickle. 13 00:00:57,520 --> 00:01:01,360 Speaker 1: You say, road dude, I swear to God look him up. 14 00:01:01,640 --> 00:01:07,240 Speaker 1: I will don't image search and just look him up. Okay, 15 00:01:07,080 --> 00:01:11,000 Speaker 1: guys specify race car. Yeah, okay, that's a good idea. 16 00:01:11,280 --> 00:01:15,280 Speaker 1: You're a Google master with your Google Foo. Yes, and 17 00:01:15,440 --> 00:01:17,559 Speaker 1: we the three of us, are apparently all eight years 18 00:01:17,560 --> 00:01:22,600 Speaker 1: old again. Uh, speaking of trickle, Chuck, Hey, happy birthday. 19 00:01:22,760 --> 00:01:25,160 Speaker 1: That would be quiet. Jerry, you have a big mouth. 20 00:01:25,840 --> 00:01:29,039 Speaker 1: You're always talking. Well, I usually remember, but I don't 21 00:01:29,120 --> 00:01:32,400 Speaker 1: didn't today, So happy birthday. Thank you. I appreciate it. 22 00:01:32,840 --> 00:01:35,240 Speaker 1: And this will be out several weeks later, but all right, 23 00:01:35,560 --> 00:01:40,040 Speaker 1: I'll get to relive my birthday all over again. Thanks man. 24 00:01:40,720 --> 00:01:46,120 Speaker 1: Have you Chuckers ever seen the movie Ferris Peeler's Day Off? Yeah, 25 00:01:46,240 --> 00:01:49,880 Speaker 1: and then we'd go there at some point in this one. Yeah, 26 00:01:50,280 --> 00:01:53,240 Speaker 1: because of ben Stein. Yeah, okay, good, so you know 27 00:01:53,320 --> 00:01:59,880 Speaker 1: the answer then something the economics. Anyone who do economics? Yeah, 28 00:02:00,120 --> 00:02:03,920 Speaker 1: they're an ECON class. The guy who says Bueller Bueller, 29 00:02:04,120 --> 00:02:06,280 Speaker 1: that's ben Stein. Remember he had that show when ben 30 00:02:06,320 --> 00:02:10,079 Speaker 1: Stein's money which was really his money? Yeah it was, 31 00:02:10,080 --> 00:02:13,119 Speaker 1: wasn't it. I think it was like yeah, I think 32 00:02:13,160 --> 00:02:15,200 Speaker 1: maybe like they gave it to him if it wasn't 33 00:02:15,280 --> 00:02:19,280 Speaker 1: one or came out of a salary, who knows. Um. 34 00:02:19,360 --> 00:02:22,120 Speaker 1: But before that show came on, he was in Farriss 35 00:02:22,120 --> 00:02:24,200 Speaker 1: Bueller's Day Off as an ECON professor. And I believe 36 00:02:24,240 --> 00:02:28,400 Speaker 1: he does have a degree in economics. He's also just 37 00:02:28,440 --> 00:02:31,800 Speaker 1: a great actor and vizine pitchman. But what he was 38 00:02:31,800 --> 00:02:34,480 Speaker 1: talking about in there, he was clear eyes clear, I 39 00:02:35,080 --> 00:02:38,880 Speaker 1: thank you, clear is awesome. Yeah, that's right, that sounded 40 00:02:38,960 --> 00:02:43,200 Speaker 1: like not ben Stein. Well that was my That's as 41 00:02:43,200 --> 00:02:46,560 Speaker 1: steiny as I get. Anyway, he was talking about voodoo economics, 42 00:02:46,840 --> 00:02:51,680 Speaker 1: and voodoo economics was another name for trickle down economics 43 00:02:52,080 --> 00:02:54,840 Speaker 1: a k a. Reaganomics. And the person who coined the 44 00:02:54,919 --> 00:02:58,680 Speaker 1: term voodoo economics do you know John Hughes, No, Yeah, 45 00:02:58,760 --> 00:03:03,440 Speaker 1: it was George Bush Senior. H W I remember that. Yeah. 46 00:03:03,480 --> 00:03:06,560 Speaker 1: He he was running in the primaries against Reagan and 47 00:03:07,040 --> 00:03:10,799 Speaker 1: for the election before he came on as his vice president, 48 00:03:11,280 --> 00:03:15,960 Speaker 1: and he was deriding Reagan's economic policies, specifically his belief 49 00:03:15,960 --> 00:03:22,160 Speaker 1: and trickle down economics as voodoo economics because there's some apparently, 50 00:03:22,200 --> 00:03:24,360 Speaker 1: some sort of magic to the whole thing that makes 51 00:03:24,360 --> 00:03:29,200 Speaker 1: it work rather than sound economic principle. Yeah, it occurred 52 00:03:29,200 --> 00:03:31,120 Speaker 1: to me today when I was studying the stuff that 53 00:03:32,520 --> 00:03:36,720 Speaker 1: John Hughes picked this very topic to represent the most 54 00:03:36,760 --> 00:03:40,720 Speaker 1: boring thing you could talk about. I guess so. And uh, 55 00:03:41,360 --> 00:03:44,160 Speaker 1: it took me a few times to to figure it out, 56 00:03:44,160 --> 00:03:46,840 Speaker 1: because you know, I don't My brain doesn't skew towards 57 00:03:46,960 --> 00:03:51,119 Speaker 1: understanding economics. It's it's tough to do. But I finally did, 58 00:03:51,160 --> 00:03:52,360 Speaker 1: and I was like, you know what it's not the 59 00:03:52,400 --> 00:03:56,520 Speaker 1: most boring thing ever, It's uh, it's pretty interesting. If 60 00:03:56,560 --> 00:03:59,200 Speaker 1: I came around. That means anyone can now it's just 61 00:03:59,440 --> 00:04:05,000 Speaker 1: our um our burden to make it interesting to everybody else, 62 00:04:05,600 --> 00:04:10,640 Speaker 1: which we've already failed that spectacular. That's right. So let's 63 00:04:10,640 --> 00:04:13,720 Speaker 1: talk about this idea first of all, trickle down economics. 64 00:04:14,200 --> 00:04:17,520 Speaker 1: UM will explain the whole thing in detail starting in 65 00:04:17,600 --> 00:04:19,520 Speaker 1: just a moment, but we should probably say that the 66 00:04:19,560 --> 00:04:24,680 Speaker 1: disclaimer if you want to drive a fiscal conservative or 67 00:04:24,720 --> 00:04:29,640 Speaker 1: a conservative economists, or just a conservative in general crazy 68 00:04:30,400 --> 00:04:34,160 Speaker 1: mentioned trickle down economics, like call what they call supply 69 00:04:34,240 --> 00:04:38,440 Speaker 1: side economics trickle down economics. It drives some bonkers. There's like, 70 00:04:38,480 --> 00:04:40,680 Speaker 1: there's no such thing as trickle down economics. It's a 71 00:04:40,760 --> 00:04:45,520 Speaker 1: derisive term. It's um it doesn't capture the spirit or 72 00:04:45,600 --> 00:04:49,080 Speaker 1: the thought behind supply side economics, which is what they've 73 00:04:49,080 --> 00:04:51,200 Speaker 1: come around to call it. But back in the day 74 00:04:51,240 --> 00:04:53,960 Speaker 1: it was definitely called trickle down economics. And the whole point, 75 00:04:54,279 --> 00:04:56,800 Speaker 1: the reason why it was called trickle down economics is 76 00:04:56,839 --> 00:05:02,640 Speaker 1: that the idea behind it is if you place wealth 77 00:05:03,520 --> 00:05:08,560 Speaker 1: with the wealthiest people, this idea goes, they will take 78 00:05:08,600 --> 00:05:11,840 Speaker 1: that money and invested into the economy, which will get 79 00:05:11,880 --> 00:05:16,120 Speaker 1: things running again. And as a result, that economic engine 80 00:05:16,120 --> 00:05:19,080 Speaker 1: revving up will create more wealth at the top that 81 00:05:19,200 --> 00:05:24,040 Speaker 1: trickles down to the lower working and middle classes. Yeah, 82 00:05:24,080 --> 00:05:27,279 Speaker 1: Like who better to stimulate the economy than the super rich, 83 00:05:28,040 --> 00:05:32,000 Speaker 1: and they will like maybe open a business to put 84 00:05:32,000 --> 00:05:35,359 Speaker 1: people to work, and then those workers will benefit and uh, 85 00:05:35,520 --> 00:05:39,480 Speaker 1: directly from that investment that that person made. Right, So 86 00:05:39,560 --> 00:05:41,760 Speaker 1: this is the whole tree behind it. We should also 87 00:05:41,839 --> 00:05:46,920 Speaker 1: disclaim even further that economics as a field is so 88 00:05:47,000 --> 00:05:54,040 Speaker 1: far from science it's preposterous. Um. Most economic theory that 89 00:05:54,120 --> 00:05:57,200 Speaker 1: you ever will run into from John Maynard Keynes or 90 00:05:57,240 --> 00:06:03,560 Speaker 1: Adam Smith or um, John Baptiste, Um. These guys are 91 00:06:03,640 --> 00:06:09,240 Speaker 1: talking about pure economies the United States, and I don't 92 00:06:09,240 --> 00:06:11,960 Speaker 1: think there's any economy in the world that is a 93 00:06:12,080 --> 00:06:16,719 Speaker 1: pure economy, free market economy. The United States has things 94 00:06:16,800 --> 00:06:22,560 Speaker 1: like tariffs, and um, we have things like government intervention, 95 00:06:22,720 --> 00:06:27,520 Speaker 1: tax policy, monetary policy. There's intervention in the market. So 96 00:06:27,600 --> 00:06:31,799 Speaker 1: you can't ever say. We can't say, really what causes 97 00:06:31,839 --> 00:06:34,559 Speaker 1: recessions and what brings us out of them, or whether 98 00:06:34,680 --> 00:06:38,200 Speaker 1: trickle down economics is effective or if it's not, or 99 00:06:38,240 --> 00:06:40,320 Speaker 1: if it is effective. Is it effective in the long 100 00:06:40,400 --> 00:06:42,920 Speaker 1: run or the short run? And what about the opposite way, 101 00:06:42,960 --> 00:06:45,040 Speaker 1: is that effective in the long run or the short run? 102 00:06:45,360 --> 00:06:49,760 Speaker 1: We don't know. That is the thing. That's why like 103 00:06:49,839 --> 00:06:51,919 Speaker 1: this kind of stuff can get people's blood boiling. So 104 00:06:52,360 --> 00:06:54,120 Speaker 1: like the point of this one is to just talk 105 00:06:54,160 --> 00:06:56,640 Speaker 1: about trickle down economics and the theory behind it and 106 00:06:56,680 --> 00:07:00,360 Speaker 1: why it may or may not work, and um, on 107 00:07:00,520 --> 00:07:04,280 Speaker 1: the caveat that we don't know, and neither do economists. Yeah, 108 00:07:04,320 --> 00:07:06,800 Speaker 1: I think I left this at a little frustrated after 109 00:07:06,880 --> 00:07:08,760 Speaker 1: my research because I thought I would come away with 110 00:07:08,800 --> 00:07:13,400 Speaker 1: an answer. Um. But I mean, if you look up reagonomics, 111 00:07:13,400 --> 00:07:16,520 Speaker 1: which is another name for Reagan's version of the supply 112 00:07:16,560 --> 00:07:21,520 Speaker 1: side economics, you will find article, well more than that, 113 00:07:21,600 --> 00:07:25,040 Speaker 1: but hundred articles on how what a great success it was, 114 00:07:25,160 --> 00:07:28,680 Speaker 1: and then the abject failure of reagonomics, and no one 115 00:07:28,800 --> 00:07:31,160 Speaker 1: is going to agree. I looked at some of these 116 00:07:31,360 --> 00:07:33,720 Speaker 1: theories and said, well, that makes sense in an ideal world. 117 00:07:34,000 --> 00:07:35,760 Speaker 1: Then I look at the opposite and think, well that 118 00:07:35,800 --> 00:07:38,480 Speaker 1: makes sense in an ideal world. And I don't. I 119 00:07:38,480 --> 00:07:39,880 Speaker 1: don't know if you, like you said, I don't know 120 00:07:39,920 --> 00:07:41,920 Speaker 1: if you can I don't know if there is an answer. 121 00:07:41,960 --> 00:07:45,800 Speaker 1: Even though everyone thinks that they're right, both people can't 122 00:07:45,840 --> 00:07:48,440 Speaker 1: be right both sides. No, it's true because these are 123 00:07:48,560 --> 00:07:52,080 Speaker 1: very opposite in most cases ideas. Yeah, but what I 124 00:07:52,120 --> 00:07:55,480 Speaker 1: did find was a bunch of articles after digging further 125 00:07:55,600 --> 00:08:01,000 Speaker 1: that said the failures and successes of Reaganomics. And I 126 00:08:01,040 --> 00:08:03,920 Speaker 1: think to me that's probably a little more accurate because 127 00:08:03,960 --> 00:08:05,960 Speaker 1: it is in a black and white situation. Well, the 128 00:08:06,240 --> 00:08:09,000 Speaker 1: part of the problem is is if you point to 129 00:08:09,080 --> 00:08:14,120 Speaker 1: Reagan's text policies, right, and and Reagan is tied to 130 00:08:14,160 --> 00:08:17,840 Speaker 1: trickle down economics. We'll get into the history, like we'll 131 00:08:17,840 --> 00:08:19,760 Speaker 1: clear all this up. But he's not really the first 132 00:08:19,760 --> 00:08:22,880 Speaker 1: one to implement this, but he's he's tied to it. 133 00:08:23,120 --> 00:08:25,679 Speaker 1: But if you look at Reaganomics, the problem is this, chuck. 134 00:08:27,320 --> 00:08:30,400 Speaker 1: If if you say, well, the nineties were very prosperous 135 00:08:30,440 --> 00:08:35,400 Speaker 1: with the dot com boom um and the the Nasdaq 136 00:08:35,520 --> 00:08:39,440 Speaker 1: hit like like a record ten thousand points at like 137 00:08:39,520 --> 00:08:42,240 Speaker 1: in the nineties, all that was from Reagan's policies, Well 138 00:08:42,280 --> 00:08:45,280 Speaker 1: you can't say that that was from Reagan's policies. We 139 00:08:45,280 --> 00:08:48,160 Speaker 1: we don't know. We just simply don't know. Was it 140 00:08:48,280 --> 00:08:51,560 Speaker 1: something short term that the Clinton administration was doing, or 141 00:08:51,720 --> 00:08:55,520 Speaker 1: was it the long term effects of Reagan's tax cuts. 142 00:08:56,200 --> 00:08:59,560 Speaker 1: We don't know, and we're going to get scores of 143 00:08:59,600 --> 00:09:02,520 Speaker 1: email from people saying what we do know, but we 144 00:09:02,559 --> 00:09:05,679 Speaker 1: don't know, so just send your email. It's fine, but 145 00:09:06,360 --> 00:09:09,720 Speaker 1: you're wrong. Uh. Well, I guess we should go ahead 146 00:09:09,760 --> 00:09:12,440 Speaker 1: and say too that just The name trickle down was 147 00:09:12,520 --> 00:09:16,520 Speaker 1: coined by Will Rogers famous Humorus in the nineteen twenties. 148 00:09:16,920 --> 00:09:19,840 Speaker 1: It is not a nineteen eighties thing. It had been 149 00:09:19,880 --> 00:09:22,439 Speaker 1: around for a while, and he said, quote, the money 150 00:09:22,480 --> 00:09:24,719 Speaker 1: was all appropriated for the top in hopes that it 151 00:09:24,760 --> 00:09:26,719 Speaker 1: would trickle down to the needy. And that's where it 152 00:09:27,360 --> 00:09:32,839 Speaker 1: started to get. It. U a derogatory feel around that name, 153 00:09:33,000 --> 00:09:36,440 Speaker 1: for sure, since the twenties and and over time, um, 154 00:09:36,600 --> 00:09:42,200 Speaker 1: especially since the eighties, the people who champion trickle down 155 00:09:42,200 --> 00:09:45,880 Speaker 1: economics or this this particular version of trickle down tax 156 00:09:45,960 --> 00:09:49,760 Speaker 1: policy have tried to distance themselves from the term trickle 157 00:09:49,840 --> 00:09:52,640 Speaker 1: down because it does seem elitist and it seems like 158 00:09:52,640 --> 00:09:57,600 Speaker 1: a big wealth transfer, which in fact it is. UM. 159 00:09:57,760 --> 00:10:03,720 Speaker 1: Let's let's talk about this. Trickled own policy isn't necessarily 160 00:10:04,720 --> 00:10:10,320 Speaker 1: um associated with Reagan's tax cuts. The whole idea behind 161 00:10:10,360 --> 00:10:12,560 Speaker 1: trickle down, as I said already, is you take wealth 162 00:10:12,920 --> 00:10:18,040 Speaker 1: and you give it to the wealthiest people. That's that's 163 00:10:18,120 --> 00:10:22,040 Speaker 1: what's done. It's a wealth transfer, and it's usually done 164 00:10:22,160 --> 00:10:24,480 Speaker 1: at a time when you're in an economic slump, so 165 00:10:24,480 --> 00:10:27,200 Speaker 1: you're hoping to revitalize things. Yeah, it's the government trying 166 00:10:27,240 --> 00:10:30,720 Speaker 1: to smooth out the rough spots in the national economy, 167 00:10:30,880 --> 00:10:34,679 Speaker 1: like a k A. Recessions. Um, so you're transferring wealth. 168 00:10:34,920 --> 00:10:38,560 Speaker 1: You're transferring wealth though on the premise that that money 169 00:10:38,920 --> 00:10:44,720 Speaker 1: is going to be reinvested, reinvigorated, used to reinvigorate the economy. Right, 170 00:10:44,800 --> 00:10:47,040 Speaker 1: So it is a wealth transfer, but with the one 171 00:10:47,080 --> 00:10:50,920 Speaker 1: we're talking about today specifically, Um, we're talking about Reagan's version. 172 00:10:51,200 --> 00:10:55,520 Speaker 1: So it's a wealth transferred through tax cuts. Right. So 173 00:10:55,559 --> 00:10:59,199 Speaker 1: when Reagan came into office, Uh, he took over a 174 00:10:59,320 --> 00:11:03,440 Speaker 1: tax policy, see where the highest tax rate was like 175 00:11:03,559 --> 00:11:10,240 Speaker 1: seventy the highest earners were paying sev on their highest income. Yeah, 176 00:11:10,240 --> 00:11:12,760 Speaker 1: and he got that down to about fifty. Yeah, which 177 00:11:12,800 --> 00:11:16,640 Speaker 1: is still seems incredibly high today in an age where 178 00:11:16,679 --> 00:11:20,920 Speaker 1: we're paying like thirty the highest earners are. So the 179 00:11:20,960 --> 00:11:25,560 Speaker 1: point is is Reagan did it through text cuts. Yeah, 180 00:11:25,600 --> 00:11:28,480 Speaker 1: but the that doesn't mean like trickle down economics don't 181 00:11:28,520 --> 00:11:33,040 Speaker 1: doesn't equal text cuts necessarily, it's down. It's that's that's 182 00:11:33,120 --> 00:11:36,360 Speaker 1: one way of putting more money into the hands of 183 00:11:36,400 --> 00:11:40,560 Speaker 1: the wealthiest, right Exactly. It's really a question of supply 184 00:11:40,600 --> 00:11:43,320 Speaker 1: and demand. And I guess we can go back through 185 00:11:43,360 --> 00:11:47,560 Speaker 1: time a little bit to John Baptis, say who you mentioned, uh, 186 00:11:47,720 --> 00:11:52,679 Speaker 1: nineteenth century French economists, and his his philosophy has been 187 00:11:52,720 --> 00:11:56,040 Speaker 1: misinterpreted a lot as supply creates its own demand. It's 188 00:11:56,040 --> 00:11:59,560 Speaker 1: not exactly right. What he was really saying is products 189 00:11:59,559 --> 00:12:02,800 Speaker 1: are paid for with products, and money just had like 190 00:12:02,880 --> 00:12:06,720 Speaker 1: a temporary function. Um. Yeah, Like if you are somebody 191 00:12:06,720 --> 00:12:10,720 Speaker 1: who produces something, when you produce that something, that item, 192 00:12:10,760 --> 00:12:13,959 Speaker 1: when you go make that shoe, and you're gonna sell 193 00:12:14,000 --> 00:12:16,280 Speaker 1: your shoe, which is for the whole reason you made 194 00:12:16,320 --> 00:12:18,720 Speaker 1: the shoe in the first place, and then with that 195 00:12:18,800 --> 00:12:21,720 Speaker 1: money you can go use it to buy other goods 196 00:12:21,720 --> 00:12:25,560 Speaker 1: and services. So the production of that shoe created a 197 00:12:25,600 --> 00:12:30,719 Speaker 1: wage for you, which in turn stimulated consumption demand from 198 00:12:30,800 --> 00:12:33,880 Speaker 1: you for something else. Yeah, product is paid for the product. 199 00:12:34,480 --> 00:12:38,120 Speaker 1: The misinterpretation that supply creates its own demand is is 200 00:12:38,160 --> 00:12:41,600 Speaker 1: just a bastardized version, and that basically means that there 201 00:12:41,880 --> 00:12:44,160 Speaker 1: would never be a failed product, like you can just 202 00:12:44,160 --> 00:12:48,600 Speaker 1: produce and produce and produce, which isn't sound No, that's insane. 203 00:12:48,679 --> 00:12:51,640 Speaker 1: And I think Say would have said that that is 204 00:12:51,640 --> 00:12:54,640 Speaker 1: not true as well. Well he did, he did um 205 00:12:54,960 --> 00:12:57,319 Speaker 1: during his lifetime even say like well, no, I mean 206 00:12:57,400 --> 00:13:01,480 Speaker 1: there it's possible that there is such thing is over production. Sure. 207 00:13:01,720 --> 00:13:03,439 Speaker 1: I mean, like if you think about it, like during 208 00:13:03,520 --> 00:13:07,160 Speaker 1: the uh the housing market crash, Yeah, it's starting a 209 00:13:07,200 --> 00:13:10,080 Speaker 1: few years ago. There was a glut of homes on 210 00:13:10,120 --> 00:13:12,760 Speaker 1: the market. And it's not like the people who are 211 00:13:12,800 --> 00:13:16,040 Speaker 1: building homes just merrily went on building homes and building 212 00:13:16,040 --> 00:13:19,559 Speaker 1: homes and building homes. Like once the demand ceased, they 213 00:13:19,640 --> 00:13:22,520 Speaker 1: stopped producing and we still had a glut on the 214 00:13:22,559 --> 00:13:25,440 Speaker 1: market and the ones who were still just sinking money 215 00:13:25,440 --> 00:13:29,000 Speaker 1: and to build like building just stop basically, and it 216 00:13:29,080 --> 00:13:32,160 Speaker 1: was because there was an oversupply because demand had ceased. 217 00:13:32,200 --> 00:13:35,640 Speaker 1: So the idea that that if you if you produce it, 218 00:13:36,040 --> 00:13:39,800 Speaker 1: demand will come on a short term basis is this 219 00:13:39,920 --> 00:13:43,640 Speaker 1: kind of a fallacy. Yeah, But in the earlier days 220 00:13:43,640 --> 00:13:47,360 Speaker 1: of this country, a lot of big thinkers agreed with 221 00:13:47,440 --> 00:13:53,000 Speaker 1: him like Jefferson. Um. But the tide turned later on 222 00:13:53,360 --> 00:13:56,480 Speaker 1: in our country with the introduction of Mr Keynes KEENSI 223 00:13:56,520 --> 00:13:59,680 Speaker 1: and economics. Yeah, so we talked about in our audio book. 224 00:14:00,080 --> 00:14:03,440 Speaker 1: We did Stuff you should know, super stuff Guide to 225 00:14:03,600 --> 00:14:07,719 Speaker 1: the Economy, which is probably super outdated, I wonder, but 226 00:14:07,840 --> 00:14:11,160 Speaker 1: there are some I think there's some evergreen content in there. Yeah, 227 00:14:11,200 --> 00:14:12,959 Speaker 1: I mean it was like an economics one on one 228 00:14:13,080 --> 00:14:18,320 Speaker 1: course with us UM. But so so, the basis of 229 00:14:18,360 --> 00:14:24,320 Speaker 1: Says law is that if you stimulate UM production, then 230 00:14:24,600 --> 00:14:28,119 Speaker 1: you'll get the economy going again. And it was implemented 231 00:14:28,160 --> 00:14:30,000 Speaker 1: for a while like some of the some of the 232 00:14:30,040 --> 00:14:35,520 Speaker 1: early twentieth century presidents like Hoover, among others like Harding 233 00:14:35,640 --> 00:14:40,240 Speaker 1: and Coolidge J Well JFK. Later, but early on in 234 00:14:40,280 --> 00:14:44,320 Speaker 1: the twentieth century, Harding and Coolidge both implemented UM this 235 00:14:44,480 --> 00:14:49,680 Speaker 1: kind of what's called supply side policy text policy right 236 00:14:49,680 --> 00:14:55,680 Speaker 1: where where if you stimulate production through lowering taxes at 237 00:14:55,720 --> 00:14:57,680 Speaker 1: the top, and we'll tell you in a second how 238 00:14:57,720 --> 00:15:00,680 Speaker 1: those two are correlated, Um, you can at the economy 239 00:15:00,720 --> 00:15:05,440 Speaker 1: going yet Well, Hoover also followed the same policy, and 240 00:15:05,600 --> 00:15:08,840 Speaker 1: under Hoover's watch, the Great depression happen. Yeah, which would 241 00:15:08,840 --> 00:15:11,960 Speaker 1: cause any just regular thinking person, even if they don't 242 00:15:12,000 --> 00:15:15,680 Speaker 1: understand economics, to think, hey, we're doing it wrong. So 243 00:15:15,920 --> 00:15:19,400 Speaker 1: Roosevelt came along, That's right. Roosevelt held the opposite view, 244 00:15:19,400 --> 00:15:21,600 Speaker 1: and he was very much a Kinesian and he was 245 00:15:21,760 --> 00:15:24,520 Speaker 1: operating at the same time that Keynes was writing and 246 00:15:25,360 --> 00:15:29,880 Speaker 1: working himself. And John Maynard Kaine said, no, no, no, 247 00:15:30,000 --> 00:15:34,120 Speaker 1: you guys have it backwards. You don't stimulate the supply, 248 00:15:34,760 --> 00:15:37,680 Speaker 1: you stimulate the demand. Then all of a sudden, if 249 00:15:37,720 --> 00:15:40,440 Speaker 1: you have a housing glut and you suddenly have people 250 00:15:40,480 --> 00:15:43,480 Speaker 1: who have more money to spend, they'll take care of 251 00:15:43,520 --> 00:15:45,760 Speaker 1: your housing glut and then things can get back to normal. 252 00:15:45,840 --> 00:15:49,840 Speaker 1: We reach equilibrium again. Yeah. He was about, uh, short 253 00:15:49,960 --> 00:15:56,200 Speaker 1: term ideas, short term fixes, maybe lower interest rates, maybe taxes, 254 00:15:56,360 --> 00:15:59,760 Speaker 1: fiscal policy, taxes and spending. Basically what you hear a 255 00:15:59,760 --> 00:16:02,920 Speaker 1: lot of obout these days. It. You know, Keynesian economics 256 00:16:03,000 --> 00:16:05,800 Speaker 1: kind of lasted a long time until probably Kennedy and 257 00:16:05,800 --> 00:16:08,360 Speaker 1: then Reagan. It's like there's only been a handful of 258 00:16:08,400 --> 00:16:12,400 Speaker 1: US presidents really endorse the trickle down theory. Yeah, like 259 00:16:12,440 --> 00:16:17,240 Speaker 1: wholeheartedly since the twentieth century. Um, so Yeah, it's the 260 00:16:17,360 --> 00:16:21,120 Speaker 1: Kenzie and policies ruled, and it was very much about 261 00:16:21,160 --> 00:16:25,520 Speaker 1: like cutting taxes for the lower and middle and working classes, 262 00:16:26,200 --> 00:16:29,440 Speaker 1: increasing taxes for the rich because if you if you're 263 00:16:29,440 --> 00:16:31,880 Speaker 1: a government, you still need revenue, right, So you can't 264 00:16:31,920 --> 00:16:34,000 Speaker 1: just cut Texas for everybody. If you cut Texas for 265 00:16:34,040 --> 00:16:35,960 Speaker 1: one group, you kind of need to increase it for 266 00:16:36,000 --> 00:16:39,280 Speaker 1: another because you still need your money coming in. Of course, 267 00:16:39,280 --> 00:16:42,040 Speaker 1: you could also take the radical step of figuring out 268 00:16:42,200 --> 00:16:45,920 Speaker 1: how to eliminate waste and blow in government. That would 269 00:16:45,920 --> 00:16:47,600 Speaker 1: help a lot, but we're not talking about that in 270 00:16:47,640 --> 00:16:52,240 Speaker 1: this one. We're talking about trickle down economics. So then 271 00:16:52,280 --> 00:16:56,200 Speaker 1: along comes Kennedy who says, hey, or my dad was 272 00:16:56,680 --> 00:16:59,760 Speaker 1: pretty rich, so I'm kind of thinking that this trickle 273 00:16:59,800 --> 00:17:02,680 Speaker 1: down thing might work, right, So he got into supply 274 00:17:02,760 --> 00:17:06,359 Speaker 1: side economics. And then when Reagan came along, he really 275 00:17:06,480 --> 00:17:09,200 Speaker 1: championed this whole idea. And it was out of a 276 00:17:09,280 --> 00:17:13,800 Speaker 1: result of some guys in the seventies saying, um, there's 277 00:17:13,840 --> 00:17:16,919 Speaker 1: this whole other thing that we've been ignoring, which is 278 00:17:16,960 --> 00:17:19,919 Speaker 1: this trickle down tax policy that we should implement, and 279 00:17:19,920 --> 00:17:23,000 Speaker 1: they got Reagan into it and he implemented it. Yeah, 280 00:17:23,119 --> 00:17:25,480 Speaker 1: and Uh, after this message break coming up here in 281 00:17:25,480 --> 00:17:27,160 Speaker 1: a sec we're going to talk a little bit about 282 00:17:27,160 --> 00:17:28,919 Speaker 1: If it doesn't sound like it makes sense to you, 283 00:17:29,440 --> 00:17:32,680 Speaker 1: there's a certain curve that will explain that might clear 284 00:17:32,680 --> 00:17:39,120 Speaker 1: it up for you. All right, So we're gonna talk 285 00:17:39,119 --> 00:17:42,240 Speaker 1: about the Laugher curve, which was also in Ferry Spueller. 286 00:17:43,280 --> 00:17:45,679 Speaker 1: Oh was it? Yeah, he says, Laugher curve. But in 287 00:17:45,760 --> 00:17:47,879 Speaker 1: high school had no idea. But no, I was like, 288 00:17:47,920 --> 00:17:50,840 Speaker 1: what are those words together? I don't understand. Laugher was 289 00:17:50,840 --> 00:17:55,119 Speaker 1: a person l A F F e er and Um. 290 00:17:55,760 --> 00:17:59,520 Speaker 1: The Laugher curve helps explain a little bit why trickle 291 00:17:59,600 --> 00:18:02,639 Speaker 1: down economics could possibly work. Is that a good neutral 292 00:18:02,680 --> 00:18:05,040 Speaker 1: way to say that? I always say so. Uh. The 293 00:18:05,080 --> 00:18:08,240 Speaker 1: idea of the Laugher curd curve is that the relationship 294 00:18:08,440 --> 00:18:11,439 Speaker 1: between taxes and revenues is a curve instead of a 295 00:18:11,480 --> 00:18:15,760 Speaker 1: direct relationship. So at a certain point, let's say you 296 00:18:15,800 --> 00:18:19,560 Speaker 1: own a company making choose and you grows ten million 297 00:18:19,560 --> 00:18:23,200 Speaker 1: dollars through like the first two financial quarters, and your 298 00:18:23,240 --> 00:18:26,439 Speaker 1: tax that let's say, and you know, if you make 299 00:18:26,480 --> 00:18:28,639 Speaker 1: any more money, then you're gonna jump up into that 300 00:18:30,160 --> 00:18:33,919 Speaker 1: tax uh, tax category. You might slow down production you 301 00:18:33,960 --> 00:18:36,359 Speaker 1: might halt the production altogether and say, you know what, 302 00:18:36,400 --> 00:18:39,320 Speaker 1: I'm gonna take off the rest of the year, maybe 303 00:18:39,320 --> 00:18:41,359 Speaker 1: even put these people out of work for four to 304 00:18:41,440 --> 00:18:44,840 Speaker 1: six months furlow, and because I don't want to be 305 00:18:44,920 --> 00:18:48,760 Speaker 1: taxed anymore. So if you look at that on a graph, 306 00:18:49,119 --> 00:18:54,040 Speaker 1: it's gonna be if you text people, they're not gonna work. 307 00:18:54,080 --> 00:18:57,240 Speaker 1: If you text people zero percent, you're not getting any money. 308 00:18:57,280 --> 00:19:01,520 Speaker 1: So in the middle of there is the curve, right it. 309 00:19:01,640 --> 00:19:07,440 Speaker 1: Basically Laugher's curve suggests that the correlation between UM tax 310 00:19:07,600 --> 00:19:12,680 Speaker 1: rates and tax revenue is not totally positive. At some point, 311 00:19:12,680 --> 00:19:14,960 Speaker 1: it starts to go back down. Yeah, that's called the 312 00:19:15,000 --> 00:19:17,879 Speaker 1: prohibitive range. At a certain point, people don't want to 313 00:19:17,920 --> 00:19:19,880 Speaker 1: be text in that range. Yeah, And it's not even 314 00:19:19,960 --> 00:19:23,920 Speaker 1: necessarily that they are not working any longer because they 315 00:19:23,960 --> 00:19:27,920 Speaker 1: resent being taxed. What Laugher was pointing out is that 316 00:19:28,320 --> 00:19:33,160 Speaker 1: there is this prohibitive range, and within the prohibitive range, UM, 317 00:19:33,400 --> 00:19:38,600 Speaker 1: you remove the incentive to work. Theoretically, where UM and 318 00:19:38,760 --> 00:19:42,600 Speaker 1: Jay mcgrathre wrote this, UH gave a pretty good UM 319 00:19:42,800 --> 00:19:45,879 Speaker 1: example where it's like, if you make that money and 320 00:19:46,000 --> 00:19:49,480 Speaker 1: you are text, that's tolerable you're still gonna make. You 321 00:19:49,680 --> 00:19:52,560 Speaker 1: still get to keep fifty percent for yourself. But when 322 00:19:52,560 --> 00:19:57,080 Speaker 1: you're texting that ninety percentile, uh, you're let's say you 323 00:19:57,119 --> 00:20:00,320 Speaker 1: were going to make another million dollars, you to give 324 00:20:00,400 --> 00:20:02,800 Speaker 1: nine thousand of it to the government. You just get 325 00:20:02,800 --> 00:20:05,240 Speaker 1: to keep a hundred thousand. Well, you might decide to 326 00:20:05,280 --> 00:20:07,199 Speaker 1: just go and spend the rest of the year at 327 00:20:07,240 --> 00:20:09,800 Speaker 1: your beach house with the money that you did make, 328 00:20:10,160 --> 00:20:12,560 Speaker 1: not because you resent being texted, because it's just not 329 00:20:12,720 --> 00:20:15,639 Speaker 1: worth it to to exert that effort to make that 330 00:20:15,720 --> 00:20:17,600 Speaker 1: next million dollars when you just get to keep a 331 00:20:17,680 --> 00:20:20,199 Speaker 1: hundred thousand of it. So at that point in that 332 00:20:20,280 --> 00:20:27,040 Speaker 1: prohibitive range, the tax policy is effectively keeping people from working, 333 00:20:27,320 --> 00:20:30,000 Speaker 1: inducing them to not work any longer, which is bad 334 00:20:30,040 --> 00:20:33,000 Speaker 1: for an economy. And that's if you're if your work, 335 00:20:33,040 --> 00:20:37,480 Speaker 1: if your income is directly related to your work, right, 336 00:20:37,680 --> 00:20:40,199 Speaker 1: you could considerably if you owned a factory or something, 337 00:20:40,280 --> 00:20:43,479 Speaker 1: and you didn't have to really exert any problems and 338 00:20:43,520 --> 00:20:45,960 Speaker 1: you could still make payroll and all that stuff, it 339 00:20:46,080 --> 00:20:47,920 Speaker 1: might be worth it to just leave it to these 340 00:20:47,920 --> 00:20:50,639 Speaker 1: other people to make that extra hundred thousand dollars for you, 341 00:20:51,760 --> 00:20:53,440 Speaker 1: rather than go off to the beach house. But if 342 00:20:53,480 --> 00:20:58,080 Speaker 1: you your effort directly um is tax, then yes, it 343 00:20:58,119 --> 00:21:02,439 Speaker 1: would become a distance and toward work. Conceivably, we should 344 00:21:02,440 --> 00:21:05,000 Speaker 1: point out Chuck and Jane didn't do a very good 345 00:21:05,040 --> 00:21:08,400 Speaker 1: job of doing that in this In this article, Laugher's 346 00:21:08,480 --> 00:21:13,040 Speaker 1: curve is a thought experiment. It's not based on data. 347 00:21:13,680 --> 00:21:16,440 Speaker 1: It's not um a hard and fast rule or a law. 348 00:21:16,600 --> 00:21:21,760 Speaker 1: It's basically an intuitive idea of tax rates and their 349 00:21:21,800 --> 00:21:24,920 Speaker 1: effect on tax revenue. Yeah, but if you don't even 350 00:21:24,960 --> 00:21:27,280 Speaker 1: have to be a business owner, Let's say you're just 351 00:21:27,359 --> 00:21:29,639 Speaker 1: a regular employee that makes a salary, you have a 352 00:21:29,680 --> 00:21:32,800 Speaker 1: salary sweet spot as well. You know, if it's great 353 00:21:32,800 --> 00:21:35,320 Speaker 1: to get promotions and to get raises, but if you're 354 00:21:35,359 --> 00:21:39,240 Speaker 1: really climbing the ladder at a certain point, you might think, man, 355 00:21:40,119 --> 00:21:43,320 Speaker 1: I got a big raise, and I'm making barely any 356 00:21:43,320 --> 00:21:46,280 Speaker 1: more money than I made before this big promotion because 357 00:21:46,280 --> 00:21:49,320 Speaker 1: I've been kicked into a higher tax bracket. So that's 358 00:21:49,600 --> 00:21:52,159 Speaker 1: the prohibitive range, and it, you know, can apply to you. 359 00:21:52,240 --> 00:21:54,480 Speaker 1: I mean you can't. You don't stop working. No, But 360 00:21:54,560 --> 00:21:57,560 Speaker 1: you may say I don't actually want their promotion because 361 00:21:57,600 --> 00:22:00,440 Speaker 1: it's going to be more responsibility and really out much 362 00:22:00,440 --> 00:22:02,520 Speaker 1: more money. So I'm going to hang out right here 363 00:22:02,600 --> 00:22:06,760 Speaker 1: rather than keep going in my little range or whatever 364 00:22:06,760 --> 00:22:12,120 Speaker 1: it is. So that's Laugher's curve, and that's a it's 365 00:22:12,119 --> 00:22:17,600 Speaker 1: a kind of the basis of trickle down tax policy. 366 00:22:17,640 --> 00:22:22,240 Speaker 1: It's the idea that, Okay, there is a point where 367 00:22:22,320 --> 00:22:26,320 Speaker 1: you can text too much and now you're actually slowing 368 00:22:26,359 --> 00:22:32,680 Speaker 1: down the economy. So based on Laugher's curve, when you're 369 00:22:32,720 --> 00:22:38,280 Speaker 1: looking at it through um through trickle down policy, there's 370 00:22:38,280 --> 00:22:40,280 Speaker 1: a point. Then that's that, like you said, there's a 371 00:22:40,280 --> 00:22:43,400 Speaker 1: sweet spot as far as text revenue goes. And it 372 00:22:43,440 --> 00:22:47,439 Speaker 1: creates this seeming paradox where if you cut tax rates 373 00:22:47,560 --> 00:22:52,960 Speaker 1: at a certain point, you'll actually increase tax revenue because 374 00:22:53,000 --> 00:22:56,040 Speaker 1: people will be incentivized to work more throughout the year. 375 00:22:56,920 --> 00:23:01,080 Speaker 1: And the other basis of trickle down theory is that 376 00:23:01,720 --> 00:23:06,720 Speaker 1: you are going to put more money or keep more 377 00:23:06,760 --> 00:23:11,520 Speaker 1: money with the people at the wealthiest. People who under 378 00:23:11,560 --> 00:23:16,359 Speaker 1: this idea are more likely to um invest it back 379 00:23:16,400 --> 00:23:19,520 Speaker 1: into the economy, right, and when they do that, supposedly 380 00:23:19,680 --> 00:23:24,880 Speaker 1: allegedly the economy booms. Yeah, what you can account for 381 00:23:25,040 --> 00:23:27,879 Speaker 1: is just the single person. This has looked at in 382 00:23:27,920 --> 00:23:31,320 Speaker 1: the broadest terms, because somebody could make all their money 383 00:23:31,320 --> 00:23:33,920 Speaker 1: and just sit on it in the bank, which isn't 384 00:23:33,920 --> 00:23:37,440 Speaker 1: reinvesting it. That is a really, really, really big point. 385 00:23:37,800 --> 00:23:41,080 Speaker 1: You'll remember back at the beginning of this recession, the 386 00:23:41,200 --> 00:23:45,800 Speaker 1: FED was doing everything it could to cheapen lending and 387 00:23:45,880 --> 00:23:52,679 Speaker 1: still has been, and uh, it didn't do anything. Come on, like, 388 00:23:52,800 --> 00:23:58,080 Speaker 1: you have to take into account things like um insecurity, fear, 389 00:23:58,760 --> 00:24:04,120 Speaker 1: um being hum yes, being human, like, we're not necessarily 390 00:24:04,359 --> 00:24:08,080 Speaker 1: rationally maximizing actors. Humans are like, there is such thing 391 00:24:08,119 --> 00:24:12,000 Speaker 1: as fear and the idea that maybe hoarding money is best. 392 00:24:12,080 --> 00:24:15,920 Speaker 1: So what's possible then if you follow this trickle down 393 00:24:15,960 --> 00:24:21,400 Speaker 1: tax policy, is you're taking money from everybody else and 394 00:24:21,880 --> 00:24:24,879 Speaker 1: giving it to the rich. Or if your head to 395 00:24:24,960 --> 00:24:28,119 Speaker 1: spun because you're a fiscal conservative, what you're doing is 396 00:24:28,320 --> 00:24:32,080 Speaker 1: allowing the rich to keep more of their income, but 397 00:24:32,160 --> 00:24:36,360 Speaker 1: they're not doing anything with it right at least as 398 00:24:36,400 --> 00:24:39,520 Speaker 1: a short term fixed that's not a good idea because 399 00:24:39,520 --> 00:24:43,160 Speaker 1: you can probably bet that eventually the rich are going 400 00:24:43,280 --> 00:24:47,360 Speaker 1: to take that money and invest it back in the economy. 401 00:24:47,400 --> 00:24:50,879 Speaker 1: But it's not. Yes, but when's that going to happen? 402 00:24:51,119 --> 00:24:53,800 Speaker 1: You can't really say. And part of the other problem 403 00:24:53,840 --> 00:24:58,119 Speaker 1: with it is is that you are then also basically 404 00:24:58,160 --> 00:25:01,840 Speaker 1: handing money out at a fire sale. You're saying, Hey, 405 00:25:01,880 --> 00:25:04,360 Speaker 1: here's a bunch of money invested back in the economy. 406 00:25:04,400 --> 00:25:07,880 Speaker 1: And have we mentioned the bargain basement rates you can 407 00:25:07,920 --> 00:25:10,760 Speaker 1: get on all of these businesses over here because the 408 00:25:10,760 --> 00:25:15,280 Speaker 1: economy is in a recessional Yeah, very much, so, you know. 409 00:25:15,359 --> 00:25:18,960 Speaker 1: And it's it's like it is literally a wealth transfer, 410 00:25:19,000 --> 00:25:22,400 Speaker 1: and under some circumstances like the recession that we're still 411 00:25:22,440 --> 00:25:26,720 Speaker 1: coming out of now, it is a wealth transfer and 412 00:25:26,880 --> 00:25:30,760 Speaker 1: an asset transfer, and that the people who have the 413 00:25:30,800 --> 00:25:34,960 Speaker 1: most money, the wealthy, also have the most buying power 414 00:25:35,440 --> 00:25:39,000 Speaker 1: and they have the best bargains. Yeah. Thomas Sowell is 415 00:25:39,040 --> 00:25:42,439 Speaker 1: a is an economist and he um he won't call 416 00:25:42,480 --> 00:25:46,600 Speaker 1: it trickle down economics because he thinks it literally benefits 417 00:25:47,400 --> 00:25:53,760 Speaker 1: the workers immediately and first because in the idealized version, 418 00:25:53,800 --> 00:25:56,520 Speaker 1: they're gonna reinvest in. The very first thing that's going 419 00:25:56,600 --> 00:25:59,119 Speaker 1: to happen is they're gonna put people to work and 420 00:25:59,119 --> 00:26:03,680 Speaker 1: people are gonna have obs. Uh. So, yeah, you won't. 421 00:26:04,119 --> 00:26:05,919 Speaker 1: He's not gonna call it trickle down theory because he 422 00:26:05,920 --> 00:26:08,159 Speaker 1: thinks it works literally the opposite way now here. I 423 00:26:08,200 --> 00:26:11,040 Speaker 1: read a column in the National Review by him, and 424 00:26:11,080 --> 00:26:16,119 Speaker 1: he's like, you will never find a legitimate economist, um 425 00:26:16,160 --> 00:26:20,280 Speaker 1: a history of economic theories and policies and analysis. You'll 426 00:26:20,320 --> 00:26:23,800 Speaker 1: never find trickle down economics anywhere. Like it drives him 427 00:26:23,880 --> 00:26:26,280 Speaker 1: crazy that people call it that because it has such 428 00:26:26,320 --> 00:26:32,040 Speaker 1: a negative association, an elitist, wealthy association. Yeah. And you know, 429 00:26:32,080 --> 00:26:34,800 Speaker 1: when you if you're during election time or during if 430 00:26:34,800 --> 00:26:37,200 Speaker 1: you see these big tax cuts for the wealthy, if 431 00:26:37,240 --> 00:26:40,240 Speaker 1: it makes your blood boil because you think they're these 432 00:26:40,240 --> 00:26:42,320 Speaker 1: people are obviously in the hip pocket of the politician. 433 00:26:42,880 --> 00:26:45,720 Speaker 1: That may be true, but you can still remove yourself 434 00:26:45,800 --> 00:26:49,560 Speaker 1: from that and look at the theory itself and does 435 00:26:49,600 --> 00:26:51,720 Speaker 1: it work or does it not? And we will do 436 00:26:51,760 --> 00:27:10,239 Speaker 1: that after this message. So check. Let's let's do just that, 437 00:27:11,080 --> 00:27:18,680 Speaker 1: um passionless rundown of how it trickled down supply side 438 00:27:19,280 --> 00:27:21,800 Speaker 1: tax policy works. Yeah, I mean, it's got to be 439 00:27:21,800 --> 00:27:25,480 Speaker 1: passionless with me because I have no idea. I can't 440 00:27:25,560 --> 00:27:28,960 Speaker 1: argue hard for any side because I read so many 441 00:27:29,040 --> 00:27:32,679 Speaker 1: articles disputing one another completely that I have no idea. 442 00:27:33,160 --> 00:27:36,840 Speaker 1: So okay, so you're we're in a recession, and there's 443 00:27:36,880 --> 00:27:39,879 Speaker 1: a discussion is it supply or dem man that you 444 00:27:39,920 --> 00:27:45,080 Speaker 1: want to stimulate. Well, with supply side economics, trickle down 445 00:27:45,680 --> 00:27:48,600 Speaker 1: is what you call it in the vernacular. You want 446 00:27:48,640 --> 00:27:53,480 Speaker 1: to stimulate the supply because under this belief, if you 447 00:27:53,520 --> 00:27:59,040 Speaker 1: stimulate the supply, the um the people who are producing 448 00:27:59,080 --> 00:28:04,640 Speaker 1: stuff will have stuff for sale and people will buy it, 449 00:28:05,040 --> 00:28:08,000 Speaker 1: and more money will enter the economy and things will 450 00:28:08,000 --> 00:28:12,080 Speaker 1: get back to normal because the basis of this is 451 00:28:12,119 --> 00:28:18,880 Speaker 1: that people still work during recessions, and since they're working, 452 00:28:19,280 --> 00:28:22,800 Speaker 1: they have money to buy things. Not everybody's working. But 453 00:28:22,920 --> 00:28:26,840 Speaker 1: you can handle the idea that not everybody's working by 454 00:28:26,920 --> 00:28:30,280 Speaker 1: getting production going again, because that creates jobs and that 455 00:28:30,359 --> 00:28:34,480 Speaker 1: in turn generates even more income passionless. So how do 456 00:28:34,560 --> 00:28:40,080 Speaker 1: you do that, According to trickle down supply side tax policy, 457 00:28:40,560 --> 00:28:44,360 Speaker 1: you cut the tax rates of the wealthiest people. You 458 00:28:44,400 --> 00:28:48,360 Speaker 1: incentivize them to keep working harder and harder because they 459 00:28:48,360 --> 00:28:51,360 Speaker 1: get to keep more and more of it themselves on 460 00:28:51,520 --> 00:28:57,400 Speaker 1: the hope that rather than keeping it themselves hoarding, they 461 00:28:57,440 --> 00:29:01,840 Speaker 1: will inject it into the economy through things like investing, 462 00:29:02,440 --> 00:29:07,720 Speaker 1: expanding their businesses, hiring more people, opening new businesses, and 463 00:29:07,800 --> 00:29:11,240 Speaker 1: taking that investment and making more money themselves, but in 464 00:29:11,280 --> 00:29:16,360 Speaker 1: the meantime spreading the wealth around through things like wages 465 00:29:16,880 --> 00:29:22,600 Speaker 1: and tax revenues through minimum wages. So that is supply 466 00:29:22,840 --> 00:29:27,760 Speaker 1: side tax policy, and whether it works or not, the 467 00:29:27,840 --> 00:29:32,520 Speaker 1: jury is still out. I did find something from um 468 00:29:32,840 --> 00:29:35,680 Speaker 1: fair Economy dot Org, which I have to say, I 469 00:29:35,760 --> 00:29:41,080 Speaker 1: don't know whether they're nonpartisan or liberal. They definitely didn't 470 00:29:41,080 --> 00:29:45,320 Speaker 1: strike me as conservative, but um so take it however 471 00:29:45,360 --> 00:29:50,840 Speaker 1: you want. But they took the UM tax rates, the 472 00:29:50,880 --> 00:29:55,000 Speaker 1: top tax rate and it's changes from nineteen fifty four 473 00:29:55,080 --> 00:29:58,120 Speaker 1: to two thousand two, and they took the changes to 474 00:29:58,200 --> 00:30:02,280 Speaker 1: that tops tech top tex rate, the highest tier, which 475 00:30:02,280 --> 00:30:04,479 Speaker 1: is the one you're supposed to cut under this this 476 00:30:04,880 --> 00:30:08,960 Speaker 1: type of tax policy, and they juxtaposed it against four 477 00:30:09,040 --> 00:30:13,880 Speaker 1: different economic indicators growth in the gross domestic product, which 478 00:30:13,920 --> 00:30:15,920 Speaker 1: is kind of like the indicator of the overall health 479 00:30:15,960 --> 00:30:20,440 Speaker 1: of the economy, UH income growth rate, which is, you know, 480 00:30:20,480 --> 00:30:26,280 Speaker 1: how the average Americans wealth grows, UM, I think, changes 481 00:30:26,360 --> 00:30:30,520 Speaker 1: to unemployment, and the growth of the hourly wage. And 482 00:30:30,560 --> 00:30:35,920 Speaker 1: they found that the correlation was basically statistically non existent. 483 00:30:36,840 --> 00:30:41,240 Speaker 1: That when you lower tax rates or raise tax rates, 484 00:30:41,280 --> 00:30:44,080 Speaker 1: but specifically in this case, when you lower the highest 485 00:30:44,120 --> 00:30:48,720 Speaker 1: tax rate, it does nothing to improve the GDP, to 486 00:30:48,880 --> 00:30:54,440 Speaker 1: improve hourly wages, to improve median wealth. Um. Just just 487 00:30:54,760 --> 00:30:59,920 Speaker 1: statistically speaking, over the course of the two lowering the 488 00:31:00,040 --> 00:31:04,120 Speaker 1: tax rates did nothing for those things. Yeah, So speaking 489 00:31:04,160 --> 00:31:07,240 Speaker 1: from that, and you can say, well, it doesn't really 490 00:31:07,240 --> 00:31:11,760 Speaker 1: do anything. Yeah. Well, with with Reaganomics, I think, well again, 491 00:31:11,800 --> 00:31:15,920 Speaker 1: I say, most people agree, but no one agrees. Uh, 492 00:31:16,000 --> 00:31:19,280 Speaker 1: it did help inflation, if he was it was because 493 00:31:19,280 --> 00:31:22,960 Speaker 1: of his policies, but tax revenues didn't seem much change 494 00:31:22,960 --> 00:31:27,160 Speaker 1: at all under those policies. Uh. We're not even getting into, 495 00:31:27,960 --> 00:31:32,400 Speaker 1: you know, the part of Reaganomics where he kind of 496 00:31:32,400 --> 00:31:35,000 Speaker 1: shut down trade with a lot of countries, keep it 497 00:31:35,040 --> 00:31:37,720 Speaker 1: in house and the effect that had. And I I've 498 00:31:37,760 --> 00:31:42,480 Speaker 1: gotten varying answers on how long after presidency can you 499 00:31:42,520 --> 00:31:46,920 Speaker 1: even look back and with a good judgment um of 500 00:31:47,160 --> 00:31:49,960 Speaker 1: like the policies really take effect ten years later when 501 00:31:49,960 --> 00:31:51,960 Speaker 1: you're gonna see or no, it's more like twenty years 502 00:31:52,080 --> 00:31:54,800 Speaker 1: or no, you can see it immediately with short term fixes. 503 00:31:55,520 --> 00:31:58,640 Speaker 1: So it's the whole thing is very frustrating because no 504 00:31:58,680 --> 00:32:02,480 Speaker 1: one agrees. Everyone thinks they're right. Yeah, that's the frustrating 505 00:32:02,480 --> 00:32:05,120 Speaker 1: part is everybody thinks they're right, like Obama's policies are 506 00:32:05,120 --> 00:32:09,360 Speaker 1: almost virtually the exact opposite of Reagan's. Well, that's funny 507 00:32:09,360 --> 00:32:13,640 Speaker 1: you say that, because that's not necessarily true. He well, 508 00:32:13,680 --> 00:32:17,920 Speaker 1: he in that he kept the Bush era tax cuts going. 509 00:32:18,640 --> 00:32:23,280 Speaker 1: He's actually kept lower um tax rates than Reagan did. 510 00:32:23,880 --> 00:32:28,920 Speaker 1: And Reagan's always pegged with the trickle down economic theory, right, 511 00:32:29,600 --> 00:32:33,000 Speaker 1: Obama's got this other one going. It's called quantitative easing. 512 00:32:33,840 --> 00:32:37,280 Speaker 1: So with Reagan it was trickled down tax policy. Under 513 00:32:37,320 --> 00:32:43,200 Speaker 1: Obama it's trickled down monetary policy, and by pumping money 514 00:32:43,200 --> 00:32:48,400 Speaker 1: into the markets through the FED, it's actually helping because 515 00:32:48,440 --> 00:32:54,640 Speaker 1: of this income inequality. It's helping the wealthiest Americans by far, 516 00:32:55,200 --> 00:32:59,920 Speaker 1: without anything trickling down really to the um, lower working 517 00:33:00,080 --> 00:33:04,320 Speaker 1: middle class Americans. So trickle down policy doesn't necessarily just 518 00:33:04,640 --> 00:33:07,920 Speaker 1: mean tax policy. You can also mean monetary policy. And 519 00:33:07,960 --> 00:33:13,400 Speaker 1: we've got a very specific trickle down policy being carried 520 00:33:13,440 --> 00:33:18,479 Speaker 1: out under Obama's entire two terms so far through connoitative easing. 521 00:33:19,400 --> 00:33:22,840 Speaker 1: Either way, there's a vast transfer of wealth going on 522 00:33:22,960 --> 00:33:25,720 Speaker 1: right now, just as there was in the eighties. Yeah, 523 00:33:25,760 --> 00:33:28,320 Speaker 1: i'd suggest people read up on their own if they 524 00:33:28,800 --> 00:33:31,480 Speaker 1: uh want to jump in this argument. This one kind 525 00:33:31,520 --> 00:33:35,080 Speaker 1: of also once you really start looking into it, especially 526 00:33:35,120 --> 00:33:40,720 Speaker 1: if you go beyond like what helps and really step 527 00:33:40,760 --> 00:33:43,680 Speaker 1: back and look at what's being done and the effects 528 00:33:43,720 --> 00:33:47,120 Speaker 1: of it forget you know, well, my idea is the 529 00:33:47,160 --> 00:33:50,960 Speaker 1: best way to to cure recession Theoretically, Like if you 530 00:33:51,040 --> 00:33:53,240 Speaker 1: if you just get out of that mindset and you 531 00:33:53,280 --> 00:33:56,640 Speaker 1: look at economic policies and you look at them through 532 00:33:57,120 --> 00:34:02,600 Speaker 1: the lens of income inequality, then suddenly conservative and liberal 533 00:34:02,800 --> 00:34:06,280 Speaker 1: and Democrat and Republican, I'll just kind of fade away, 534 00:34:06,400 --> 00:34:10,520 Speaker 1: and basically everybody has reason to feel like they're being 535 00:34:10,520 --> 00:34:13,400 Speaker 1: talked out of something very valuable. Yeah, I came up 536 00:34:13,440 --> 00:34:14,879 Speaker 1: with the nine D. I'm sure I'm not the first 537 00:34:14,880 --> 00:34:18,160 Speaker 1: person to come up with it, Josh and Amis. I 538 00:34:18,200 --> 00:34:23,399 Speaker 1: wonder if if you did cut down on the tax 539 00:34:23,520 --> 00:34:25,799 Speaker 1: rates for the wealthy to to about where they are now. 540 00:34:26,480 --> 00:34:30,360 Speaker 1: This this is like bargain basement tax rates. Frankly, it 541 00:34:30,440 --> 00:34:34,000 Speaker 1: used to be at n in the sixties ninety was 542 00:34:34,040 --> 00:34:37,960 Speaker 1: the highest. Now it's thirty five ent under Reagan. Much 543 00:34:37,960 --> 00:34:39,600 Speaker 1: of the world pays a lot more taxes than we do. 544 00:34:39,719 --> 00:34:43,719 Speaker 1: Oh yeah, so thirty. I think it is fair for everybody. 545 00:34:44,239 --> 00:34:47,399 Speaker 1: You to say the least if not unfair because it's 546 00:34:47,440 --> 00:34:51,879 Speaker 1: so low, But let's say that it's fair. You keep 547 00:34:51,920 --> 00:34:55,920 Speaker 1: the tax rates low on the wealthiest earners, and you 548 00:34:56,000 --> 00:34:58,239 Speaker 1: let them build up as much money as they want 549 00:34:58,320 --> 00:35:02,279 Speaker 1: in their lifetime. But when they die, you text their 550 00:35:02,480 --> 00:35:06,839 Speaker 1: estate like there is no tomorrow. And I wonder, first 551 00:35:06,840 --> 00:35:12,320 Speaker 1: of all, you increase revenue, but you also prevent dynasties. Uh, 552 00:35:12,560 --> 00:35:15,000 Speaker 1: you want to prevent dynasties. Sure. I read an article 553 00:35:15,080 --> 00:35:21,319 Speaker 1: about how UM the those who inherit wealth tend to 554 00:35:21,360 --> 00:35:23,880 Speaker 1: invest it less, they tend to hoard it more because 555 00:35:23,920 --> 00:35:26,799 Speaker 1: they didn't have any means of accumulating wealth other than 556 00:35:26,840 --> 00:35:29,040 Speaker 1: a windfall. I think if you just look at it 557 00:35:29,120 --> 00:35:33,440 Speaker 1: statistically speaking, and you look at rather than again on 558 00:35:33,480 --> 00:35:36,920 Speaker 1: an individual basis, if you look overall, when wealth is 559 00:35:37,120 --> 00:35:41,920 Speaker 1: inherited rather than earned, the inherited wealth is less often 560 00:35:42,000 --> 00:35:46,360 Speaker 1: invested in ways like um that create new jobs then 561 00:35:47,640 --> 00:35:50,480 Speaker 1: the wealth that's earned. And it's the same thing like 562 00:35:50,520 --> 00:35:53,160 Speaker 1: if you won the lottery or something like that, you 563 00:35:53,200 --> 00:35:55,400 Speaker 1: should be terrified of losing that money because you didn't 564 00:35:55,440 --> 00:35:58,640 Speaker 1: do anything to earn it. So there's no guarantee whatsoever 565 00:35:58,680 --> 00:36:00,719 Speaker 1: that you will ever earn that money or have that 566 00:36:00,760 --> 00:36:03,680 Speaker 1: money again once you spend it. If you amass a 567 00:36:03,800 --> 00:36:07,800 Speaker 1: fortune in industry and lose it, you did it once, 568 00:36:08,200 --> 00:36:10,360 Speaker 1: there's a likelihood that you could go do it again, 569 00:36:11,280 --> 00:36:14,000 Speaker 1: so you're more likely to take more risks with that wealth. 570 00:36:14,080 --> 00:36:16,560 Speaker 1: But people work to take care of their families for 571 00:36:16,640 --> 00:36:19,040 Speaker 1: generations to come, like that's what their goal is, right. 572 00:36:19,120 --> 00:36:21,719 Speaker 1: So let's say you have a hundred million dollars state 573 00:36:23,040 --> 00:36:28,800 Speaker 1: and you have one kid, and your state is tax 574 00:36:28,880 --> 00:36:33,840 Speaker 1: at when you die, your kids still gets ten million dollars. 575 00:36:34,200 --> 00:36:40,280 Speaker 1: If your kid inherited ten million dollars, you're a wealthy 576 00:36:40,320 --> 00:36:42,759 Speaker 1: person and your kid inherits ten million dollars. I think 577 00:36:42,800 --> 00:36:47,560 Speaker 1: you can get your eternal rest easy knowing that your 578 00:36:47,640 --> 00:36:50,480 Speaker 1: kid's gonna be okay with the ten million bucks for 579 00:36:50,520 --> 00:36:53,320 Speaker 1: the rest of his or her life. I think that's fair. 580 00:36:54,400 --> 00:36:56,399 Speaker 1: That's enough to set them up in business for sure. 581 00:36:56,440 --> 00:36:59,000 Speaker 1: That's enough of a leg up that most people don't have. 582 00:36:59,480 --> 00:37:03,080 Speaker 1: I uh, that's fine. You don't have to agree with me. Yeah, 583 00:37:03,200 --> 00:37:05,279 Speaker 1: I think it's I think it's like when I hear 584 00:37:05,320 --> 00:37:08,360 Speaker 1: about Bill Gates is only gonna leave his kids so 585 00:37:08,440 --> 00:37:11,080 Speaker 1: much money or whoever was it Bill Gates or Warren 586 00:37:11,080 --> 00:37:14,120 Speaker 1: Buffet or someone they both are they pledged like a 587 00:37:14,160 --> 00:37:17,960 Speaker 1: significant amount of their their estates right to not to 588 00:37:17,960 --> 00:37:20,200 Speaker 1: get leave it just lead that to their children. I 589 00:37:20,239 --> 00:37:22,279 Speaker 1: think that's that's great, But I think that's like it 590 00:37:22,280 --> 00:37:24,799 Speaker 1: should be a person's choice and the government shouldn't make 591 00:37:24,800 --> 00:37:28,200 Speaker 1: that decision for them. Like government making decisions like that 592 00:37:28,280 --> 00:37:31,480 Speaker 1: just that makes my blood boil. But that's tax policy, man, 593 00:37:31,840 --> 00:37:34,520 Speaker 1: Like they can make that decision while you're alive or 594 00:37:34,520 --> 00:37:38,440 Speaker 1: when you die. It's still there your income being taxed 595 00:37:38,880 --> 00:37:41,280 Speaker 1: in either way. It's like are they taxing your inheritance 596 00:37:41,320 --> 00:37:45,440 Speaker 1: before your death or well, But it isn't tax policy 597 00:37:45,480 --> 00:37:48,439 Speaker 1: because josh An nomics isn't. No. But the very fact 598 00:37:48,440 --> 00:37:51,400 Speaker 1: that there are taxes and then progressive means that the 599 00:37:51,480 --> 00:37:55,080 Speaker 1: wealthiest people pay more. The more you learn, the more 600 00:37:55,160 --> 00:37:58,399 Speaker 1: tax you pay. So why does it matter whether it's 601 00:37:58,440 --> 00:38:02,399 Speaker 1: now or when it's when you die? And I that's 602 00:38:02,440 --> 00:38:05,239 Speaker 1: not an entirely that's kind of a globe interpretation because 603 00:38:05,239 --> 00:38:08,120 Speaker 1: I realize what I'm saying is normal taxes now and 604 00:38:08,120 --> 00:38:11,520 Speaker 1: then a heavy tax when you die to prevent dynasty's 605 00:38:11,800 --> 00:38:14,399 Speaker 1: and to increase revenue. I just don't think it will 606 00:38:14,440 --> 00:38:17,840 Speaker 1: disincentivize work, because I think while you're alive, you still 607 00:38:17,840 --> 00:38:21,239 Speaker 1: want to make money. People's those the people who are 608 00:38:21,280 --> 00:38:26,359 Speaker 1: dedicated to amassing hundreds of millions or billions of dollars. 609 00:38:26,400 --> 00:38:28,759 Speaker 1: That's not going to prevent them from making money while 610 00:38:28,800 --> 00:38:31,800 Speaker 1: they're alive. It's not you don't think they're still alive 611 00:38:32,520 --> 00:38:35,040 Speaker 1: and their kids still get a slice of the pie. 612 00:38:36,160 --> 00:38:38,680 Speaker 1: But what about their kids kids and their kids kids, Well, 613 00:38:38,760 --> 00:38:41,120 Speaker 1: then it's up to their kid to go out and 614 00:38:41,200 --> 00:38:44,080 Speaker 1: through his own effort or her own effort, amass their 615 00:38:44,120 --> 00:38:48,520 Speaker 1: own fortune just like everybody else's. Everybody gets to start 616 00:38:48,560 --> 00:38:51,799 Speaker 1: at zero, although those rich kids still get that leg 617 00:38:51,880 --> 00:38:55,840 Speaker 1: up of ten percent of the estate. That's that's just 618 00:38:55,960 --> 00:38:59,480 Speaker 1: my idea. I got your josh Anamics, Josh ms Man, 619 00:38:59,680 --> 00:39:02,719 Speaker 1: We're and get some letters for that one. You got 620 00:39:02,719 --> 00:39:06,200 Speaker 1: anything else? Uh? And hey, let me say that, like, 621 00:39:06,280 --> 00:39:08,560 Speaker 1: I think people should be able to live much more 622 00:39:08,600 --> 00:39:12,160 Speaker 1: meagerly than they do. I'm not a proponent of people 623 00:39:12,400 --> 00:39:16,080 Speaker 1: leading these lavish, wasteful lifestyles, but I think if you 624 00:39:16,120 --> 00:39:18,160 Speaker 1: know you've made your money in a legitimate way, then 625 00:39:18,200 --> 00:39:23,000 Speaker 1: that's your right to do so. I guess you know. Yeah, 626 00:39:23,320 --> 00:39:25,200 Speaker 1: I wouldn't want some government putting their hand in my 627 00:39:25,239 --> 00:39:27,359 Speaker 1: pocket and saying, hey, you worked really hard for all that, 628 00:39:27,480 --> 00:39:30,920 Speaker 1: give me of it. Well, I mean, who does Nobody 629 00:39:31,000 --> 00:39:35,080 Speaker 1: wants that, especially when you when you look at government 630 00:39:35,200 --> 00:39:38,440 Speaker 1: wastefulness or if you don't want a fund war or 631 00:39:38,480 --> 00:39:40,680 Speaker 1: something like that, like then it makes it even harder 632 00:39:40,719 --> 00:39:42,920 Speaker 1: to bite. Yeah, the whole thing makes me want to 633 00:39:43,280 --> 00:39:46,880 Speaker 1: drop out and move to an island or someplace in 634 00:39:46,880 --> 00:39:49,640 Speaker 1: the woods, very quiet, to where I don't have to 635 00:39:49,760 --> 00:39:52,680 Speaker 1: even think about any of this stuff. I got my 636 00:39:52,719 --> 00:39:54,759 Speaker 1: little garden and got my chickens and my goats. You 637 00:39:54,800 --> 00:39:57,080 Speaker 1: need to go make some money so you can do that. Yeah, 638 00:39:58,040 --> 00:40:02,600 Speaker 1: I want just a little nine bed room house on 639 00:40:02,760 --> 00:40:08,440 Speaker 1: like the staff. Yeah, all right, are we done with this? 640 00:40:08,640 --> 00:40:11,680 Speaker 1: We're done with trickle down economics. If you want to 641 00:40:11,760 --> 00:40:13,600 Speaker 1: learn more about it, you can read this article on 642 00:40:13,600 --> 00:40:17,520 Speaker 1: how stuff works dot com. Just type trickle down economics 643 00:40:17,520 --> 00:40:20,040 Speaker 1: into the search bar. And since I said search bar's 644 00:40:20,120 --> 00:40:24,360 Speaker 1: time for listener mail, I'm gonna call this one. The 645 00:40:24,400 --> 00:40:28,400 Speaker 1: waiting is the hardest part. Hey, guys, just found your 646 00:40:28,400 --> 00:40:31,400 Speaker 1: podcast a few months ago and I love it. Um. 647 00:40:31,520 --> 00:40:34,480 Speaker 1: The reason I'm thanking you is because I have a 648 00:40:34,520 --> 00:40:36,520 Speaker 1: bit of a worrying problem. I just sent out my 649 00:40:36,560 --> 00:40:39,959 Speaker 1: application to dental school and now I'm playing the waiting game. 650 00:40:40,760 --> 00:40:43,320 Speaker 1: Through my waiting I always find myself worrying and wondering 651 00:40:43,320 --> 00:40:45,239 Speaker 1: what could happen, even though I know it's not the 652 00:40:45,239 --> 00:40:47,439 Speaker 1: best thing for me. Through my long days at work 653 00:40:47,480 --> 00:40:50,160 Speaker 1: this summer, listening to you guys really helps me, uh 654 00:40:50,320 --> 00:40:52,880 Speaker 1: not only take my mind off the process, but helps 655 00:40:52,920 --> 00:40:56,279 Speaker 1: take the bite off my worrying mind and even makes 656 00:40:56,280 --> 00:40:58,880 Speaker 1: me laugh out loud while people look at me like 657 00:40:58,880 --> 00:41:01,920 Speaker 1: I'm on crack, which by the way, I know all 658 00:41:01,960 --> 00:41:05,080 Speaker 1: about through your crack podcast. That was a good one, um. 659 00:41:05,120 --> 00:41:07,480 Speaker 1: So thanks for what you do. You're informative and your 660 00:41:07,719 --> 00:41:10,600 Speaker 1: humorous podcast makes my day easier, helps me through the 661 00:41:10,600 --> 00:41:13,160 Speaker 1: waiting game, and teaches me so much about what I 662 00:41:13,200 --> 00:41:15,520 Speaker 1: do not know. By the way, I know it's a 663 00:41:15,560 --> 00:41:17,680 Speaker 1: long shot, but if by any chance you read this 664 00:41:17,719 --> 00:41:20,560 Speaker 1: on listener mail, please give a shout out to my 665 00:41:20,640 --> 00:41:23,719 Speaker 1: fiance Elizabeth. We have less than a year before a 666 00:41:23,719 --> 00:41:28,880 Speaker 1: big day. And that is from Caleb Davis. Indicator I 667 00:41:29,239 --> 00:41:33,400 Speaker 1: end is that Indiana yeses so Caleb, I was just 668 00:41:33,480 --> 00:41:35,600 Speaker 1: making sure there wasn't some new state I didn't know 669 00:41:35,640 --> 00:41:40,600 Speaker 1: about in Yes, um so Caleb and Elizabeth from Indo hoo, 670 00:41:42,120 --> 00:41:45,640 Speaker 1: congratulations And Caleb, I hope you get into a dental school. 671 00:41:45,760 --> 00:41:48,240 Speaker 1: My friend, Uh follow up with us? Does it? Caleb 672 00:41:48,320 --> 00:41:51,200 Speaker 1: bright us frequently? Is that the Caleb I'm thinking of? No, 673 00:41:51,520 --> 00:41:53,920 Speaker 1: that is not you're thinking to Caleb that won our 674 00:41:53,960 --> 00:41:57,280 Speaker 1: contestant at lunch with us? Is that the same Caleb 675 00:41:57,320 --> 00:42:00,640 Speaker 1: that writes us sometimes follows us on Twitter? I think, so, 676 00:42:00,880 --> 00:42:03,640 Speaker 1: oh hey, what's is? Well? We're gonna say slat. I 677 00:42:03,680 --> 00:42:06,680 Speaker 1: don't remember well at any rate. Thanks to all that 678 00:42:06,760 --> 00:42:09,879 Speaker 1: Caleb's out there who listen. We appreciate you. All right. 679 00:42:10,680 --> 00:42:13,279 Speaker 1: If you're named Caleb, or even if you're not, and 680 00:42:13,360 --> 00:42:14,640 Speaker 1: you want to get in touch of this, you can 681 00:42:14,680 --> 00:42:17,120 Speaker 1: tweet to us at s y s K podcast. You 682 00:42:17,160 --> 00:42:20,000 Speaker 1: can join us on our Facebook page. It's Facebook dot 683 00:42:20,000 --> 00:42:22,480 Speaker 1: com slash Stuff you Should Know. You can send us 684 00:42:22,480 --> 00:42:25,200 Speaker 1: an email to Stuff Podcast at how stuff Works dot 685 00:42:25,280 --> 00:42:27,719 Speaker 1: com and join us at our home on the web, 686 00:42:28,000 --> 00:42:36,080 Speaker 1: the Beautiful Stuff you Should Know dot com. For more 687 00:42:36,120 --> 00:42:38,400 Speaker 1: on this and thousands of other topics. Is it how 688 00:42:38,440 --> 00:42:46,879 Speaker 1: Stuff Works dot com