Trickle Down Economics

W. Darnall & S.Darnall

The Left is fond of condemning so-called "trickle down economics" as not working. But from what we saw as my husband and I drove from the Texas Hill Country down to the coast the concept works just fine . . . as do all the folks who now have jobs and business, thanks to the revival of the fossil fuel companies' resurgence in Texas.

There are several little communities along the route that were drying up and dying away. They are not all thriving, but there are signs, literally signs, that life is returning to their economies. Signs for new businesses. New signs for old businesses. Billboard advertising that did not exist previously. Signs advertising jobs. Realty signs of all sorts. Construction signs at new building sites. All the signs of an economy responding to regional growth and the stimulating effects of private businesses putting people back to work.

Most of this is the result of large companies moving in to develop the oil fields. Bringing in workers. Setting up job sites. And, subsequently requiring extensive support systems for business and personnel. Housing, food, transportation, and even such things as septic systems and trash removal. The money doesn't so much trickle down as it spreads through the community, enriching lives just as the silt-filled flood waters enrich the soil of a river's delta region.

This is all being accomplished without government aid. This is about capitalism. Entrepreneurs making money. Small businesses seeing a need, adapting to fill that need, and making money in the process. Shouldn't this be the spirit of American business?

We met an individual on our way back from the beach when we needed our vehicle towed after a breakdown. The tow truck driver had an interesting tale of individual initiative and hard work resulting in payoff for effort. His family began with one truck and a small area in their local community. They have since branched out to several communities covering a large area of Central Texas and are soon looking to expand to a dozen towing vehicles. They do this by being committed to outstanding customer service, which we recognized in their taking our job which was out of their service area, their quick response time, the care he took in handling our vehicles, and his overall friendly attitude. They seem to take great pride in offering not only excellent service, but doing so without charging unreasonable rates. The business has become so successful that for our driver it has gone from a part-time job, to replacing his former full-time employment. While individual initiative spurs capitalism, there is a role for government to manage the growth of their communities, but in such a way as to help and not hinder economic expansion. A friend of ours, who has been out of work for an extended period of time, is now helping develop building sites for businesses looking to move into the area. Some of the money has trickled down into his pockets. What the local governments are doing and what he is doing is easing the way for them to develop. Local governments are helping to facilitate and assist this growth, which is their proper role. Supporting responsible business growth and community economic expansion is a legitimate function of government.

Not everyone will share equally in the rewards of this economic expansion. Those who are proactive and imaginative, like the two examples just mentioned, will reap the greatest benefits. But, this does not make it unfair; it simply makes it a part of the real world. The adult world where choices have consequences for success as well as for failure.

As we move closer to the November elections we need to remember that business isn't the enemy. Business is the economy, not government. Businesses generate money, governments can only redistribute it. We need to support candidates who are interested in helping businesses grow and in reducing the size of government.

America needs to get back to the idea that incomes belong to citizens, not to the government. Our capital should not be squeezed and funneled through government programs to the point that it is reduced to a mere drip drip drip. The free market does a much better job of picking winners and losers than does the government. Buyers will let businesses know what they want by whether or not they open up their pocketbooks.

So, before you vote in the upcoming elections ask yourself this question: Do you want to be a citizen in a free county or merely a taxpayer in a welfare state?

© Walter W. Darnall, Jr. & Suzann C. Darnall, JULY 2012

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