The true impact of ‘trickle-down’

I never believed in trickle-down economics. Until now.

Trickle-down economics insists that tax cuts for the wealthy and businesses eventually “trickle down” to those who are less fortunate. It sounds good in theory, but in practice it doesn’t create jobs or increase consumer spending. It only widens income inequality. That’s why I’m skeptical.

But here’s the perverse way that trickle-down is true. Republicans are out selling the new Budget Reconciliation Bill. But it will be a disaster for Illinois, which is projected to lose $51 billion in Medicaid funding over 10 years. You can’t cut that kind of money without affecting the entire Medicaid system.

My intellectually disabled son David requires 24/7 support. He lives in a Medicaid-funded group home and attends a Medicaid-funded day activity center, both in Elgin. Republican officials have said that no funding will be cut from his services. That may be true in terms of direct cuts. (Or not. In 2012, the last time something like this happened, disability programs were paid 3.5% less). But indirectly, there will be cuts.

Taking $51 billion out of Medicaid in Illinois will have a ripple effect on all programs under the Medicaid umbrella. Including David’s disability supports, which are already underfunded. Optional services like dental care and physical therapy may be first to go.

Beyond David, no one in the state is exempt. This massive cut will force Illinois to make up the shortfall. How? By kicking people off benefits. By making hospitals provide more uncompensated care — which raises everyone’s insurance premiums. By decreasing spending on other priorities like education, transportation and public safety. These hard choices will hurt everyone. But especially the most vulnerable.

That’s the trickle-down effect of less money. A cut anywhere puts pressure everywhere.

James B. Gould

Carpentersville