Just recently at a local debate in the VA-11 there was a democratic congressman blaming trickle down economics for the morgage crisis.  This man said that more regulations by the federal governments and giving more money to the middle class will create more revenue for the government.  He also said that trickle down economics have caused the mortage crisis since it has caused so few people to be able to afford their mortgages.  This idea of trickle down economics is made on a false understanding on what the idea of trickle down economics is.  

Ronald Reagan championed the that trickle down economics is the best way to grow the economy as well as maximizing government revenue.  The idea is that if the tax breaks are given to those who provide jobs then not only will the government get money from the income taxes of the employees, as well as taxes from the products that the company provides.  Almost every politician and economists will openly admit that the US government is ran by those who own and operate small business.  Millions of jobs every year are created through small businesses opening and hiring employees.  Those employees then in turn purchase more products and cars in our economy and thus allowing the cycle of small business to start more around the community.  These purchases also provide even more taxes to the government thus increasing revenue more.  This is the idea of trickle down economics, it has nothing to do with regulations, and definitely nothing to do with increasing and adding regulations. 

I think that it is impossible to prove based on modern results that trickle down economics do not work.  When Reagan and George H.W. Bush used tax cuts the economy continued to grow not only through the 80s and early 90s when they were in office, but also throughout the mid to late 90s as well.  Bill Clinton reaped the benefits of the trickle down economics that Reagan and Bush 41 instilled.  When President George W. Bush was elected in 2000 he instilled these same tax cuts and the economy grew almost 20% in just the first 5 years of his presidency.  This is an unprecedented growth.  

The recent economic crisis is in no way the result or the cost of trickle down economics.  This crisis has been the result of multiple administrations, making multiple mistakes, and making multiple wrong assumptions about not only our economy but about the people, the companies that provide mortgages, and especially the people who controlled these companies.  The democrats or Republicans are not to blame.  The problem is to big to blame any one or any party.  I hope that the candidate that is blaming the current president Bush, or the practice of trickle down economics realizes that his basis for that arguement is wrong and I am sure that if the congress and the country were to go on that basis then we would be in a much worse place.