The Better Business Climate Model

1038 Words5 Pages
The Better Business Climate model is a plan that was used to bring renewed prosperity to the United States. It actually became the operating policy for both Republican and Democratic administrations since 1980 (Leopold, p. 33). The Better Business Climate model follows three simple steps: “1.) Cut taxes on corporations and the super-rich, 2.) Reduce regulations, especially on Wall Street, and 3.) Pare government social services” (Leopold, p. 93). The idea behind the model was to inspire the wealthy people of the United States to invest, which would create more jobs in order to raise incomes for everyone working. According to the chart in the textbook, the Better Business Climate model in theory should cut taxes, cut regulations, and cut government…show more content…
The American federal government slashed effective tax rates for large corporations and the rich, mainly the top one-percent. The major drop in taxes really began in the late 1980s in which large corporations have been reaping the benefits ever since. Regulations, which keep corporations and departments in check, were severely cut. The cuts in regulation really helped Wall Street in which Wall Street firms now had greater economic freedom. The model eliminated the Glass-Steagall legislation, which prevented large firms from making risky financial investments. Deregulation is the key to runaway equality and deregulation allowed it to happen (Leopold, p. 35). Lastly, reducing government social spending eliminated many safety net programs that aided and protected workers and families during tough economic times. The cutting of safety net programs does the exact opposite of what the Better Business Climate model promised. The model is supposed to bring renewed prosperity to the United States but it brought more inequality and stripped safety net programs that actually helped most Americans. This lack of assistance means that struggling people are struggling even more and they have less money to spend and to put back into the economy. Since the creation of the Better Business Climate model, government spending on food stamps, unemployment insurance, and other social programs has been cut as…show more content…
What the model has done to the United States matters and it matters a lot. The American people of today are still feeling the atrocious effects of the Better Business Climate model. The inequality gap keeps growing in which the rich are getting richer and the poor are getting poorer. Unbridling Wall Street from regulations allowed financial raiders to buy companies, increase debt, and let the American people suffer from its demoralizing effects (Leopold, p. 54). The wealthiest one percent, usually CEOs and investment bankers, were given hefty raises while the average worker’s pay has languished. Instead of the positives from trickle-down economics, like Republicans who endorsed the Better Business Climate model promised, the economy has turned into trickle-up economics (Leopold, p. 55). All of the money is being transferred from the bottom to the top, leaving most Americans at the bottom to

More about The Better Business Climate Model

Open Document