Why Centralized Trickle Down Economis does not work, and Reagan's trickle down economy did.

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Here is the problem with Obama's thinking that he is going to "build the middle class from the middle, out,"  it cannot be done in the context of a massive welfare (read "wealth redistribution scheme") effort.  

The plan,  his plan,  fails under the weight of its own process.  

Here is how it works,  or should I say,  "here is how it doesn't work." 

A family of four,  can draw $1,200 worth of food stamps,  per month,  provided they "qualify" for this societal gift because of low income.  

That same family of four qualifies for "section eight" rent support which can be $1,400 per month,  provided,  of course, they maintain a specified income level that would otherwise define them as "poor"  or "poverty stricken"  ($22,000 for a family of four is the American definition of "poverty stricken,"  ---    five bucks a day in some parts of the third world is the more common standard).  

A poor family of four can, also,  receive 400 dollars a month because of the "earned income tax credit,"  provided they do not actually pay any income tax at all. 

There are other programs,  of course,  but the above, alone,   adds up to $3,000 per month on top of the $1,800 per month the poor are allowed to earn,  each month. Their combined income,  under the above benefit plan,  amounts to $48,000. 

$48,000 per year  !!!   Yet,  none of this allows this family of four to move into the world of fiscally independent.  In fact,  this scenario,  forces the poor to remain exactly where they are for decades to come.  You should know that if this family sees an opportunity to earn more money,  to buy their own home,  to own their own cars,  etc., etc.,  the cost is the loss of the $3,000 month Central Government pays them,  and higher taxes paid to the Feds,  not to mention property taxes paid to the local governments.  

Understand that if a  "poor" family decides to buy a home,  or take a job that earns $20.00 per hour or more,  they lose almost all of their Federal subsidies. 

As a result of the above real world scenario,  the poor are trapped in their "poor" condition,  never to be members of the self-sustaining middle class.  If they finally decide to "make the move,"  and some folks make this decision,  they have to be committed to a strategy that gives them less than half their present income,  as they work to qualify themselves, educationally,  to actually join the working middle class.  

In the past election, 67% of these folks voted for Obama.  As you can see,  this "voter base" is as close to a permanent class of voters as one can find. 

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Here is Reagan's "trickle down"recovery compared to Obama's,  but keep voting for these know nothing fiscal losers.  Go to Human Events for a discussion of the chart,  below.