Tax cuts for the corporate elite do not trickle down to middle class. Bush's trickle down theory, which isn't necessarily Bush's but a republican theory, didn't work. Tax cuts to the middle class work by putting extra dough into the BUYING power of the US. The top rich 4% of the US are not the buying power. The middle class is. We are the consumers the top rich 4% rely on. Without us, they die. So tax cuts to them benefit them, tax cuts to us benefit ALL of us... but that's not trickle down. And this housing crisis wasn't and isn't the ONLY thing that caused the shit storm we're in. We've been slowly losing jobs in the US to outsourcing. Outsourcing only benefits the rich CEOs that are getting the tax cuts. We lost manufacturing jobs because of outsourcing and trade policies being adjusted. While we were busy losing manufacturing jobs and having a lot of white collar jobs outsourced, the banks were lending to those who shouldn't have been loaned to, just so they could get a house. Then the capital gains tax was lifted, allowing people to flip houses to make a profit. Houses kept flipping and going up in price and flipping and going up. The bubble started to grow... Loan brockers and loan officers got super greedy and started handing out more and more loans, bank CEOs saw money, money, money, without consequence, consumers gambled because they're lead to believe that you need your piece of the pie, all the while we're slowly losing our workforce to foreign countries who make their shit cheaper. Boeing is a prime example. Huge work forces lost jobs due to them building planes elsewhere. Then the good ol' Enron loop hole allowed for unregulated trading of oil futures and some high paid fuckheads decided to start trading oil like crazy making the price go up and up. This caused people to scale back on the buying, which caused shakey ground with retailers and stocks, which caused job layoffs, which those unemployed had a hard time finding work because it's all over seas, which caused them to not be able to pay their home loans, which freaked out banks to tighten up credit, which caused the gamblers who got ARM loans hoping to refi to get bit and not be able to refi, which left them with a loan they couldn't pay, which freaked the banks out more, which tightened up credit for businesses and construction, which caused tons of people to start losing jobs because the construction industry wasn't getting credit, which caused MORE bad loans, which caused LESS spending in retail, which is now all being flushed out in companies like Starbucks, HomeDepot, Serius radio, Microsoft and countless other companies that rely on consumer money and credit to stay afloat. And with those companies losing money, more jobs are lost.
Oh, and did I mention that the price of EVERYTHING was getting out of control. Gas prices made food cost more because truckers had to pay an arm and a leg to stay in business and pass that expense on to the consumer. Everything inflated at a stupid rate, without pay going up along with it. And for fucks sake, 7 bucks for a cup of coffee!! No wonder Starbuck's gotta lay off people. Coffee is an easy thing to cut out of your budget and make yourself.
Now, to fix this?? Shit man, it's gonna take a lot of regulations, it's gonna take a lot of MIDDLE CLASS tax cuts, it's gonna take a lot of spending and investing in companies that made the right choices, and it's gonna take free market working it's way out. The gov can get public works projects goin' which will cause some jobs. The gov can help get the banks to start lending again, which will help get construction and businesses to be able to pay bills and get moving again. And as consumers... let's all remember how we got here. WE were the ones that were living outside our means fueling the greed of the CEOs.