Trickle down theory has some holes

There is finally something economists, politicians and the average American can agree upon – the trickle down theory of economics works. The only problem is average Americans have found that affluence does not trickle down in this new millennium, as politicians would have them believe – but financial ruin does.

The financial avalanche that began with the greed and corruption on Wall Street didn’t take long to begin a slide that has taken out huge financial institutions, large corporations, businesses along Main Street and average Americans. In fact, it didn’t take long for the downturn in America’s economy to strike my family and thousands like us.

One of my sons began working for a well-known national company in the food industry about eight months ago, making a lateral move after working 15 years for another company. The rosy financial picture company officials painted for him dimmed soon after signs of a struggling company became apparent – late payments to vendors and distributors. Because this company was known to be rock solid, my son wasted little time worrying about the financial status of his employer. He wasted little time worrying, that is, until the conference call he received Oct. 3.

During that call, more than 200 management personnel across the nation were told their company was closing. The company was locking the doors and no one would be paid for the past week’s work. Done. Finished. Kaput.

My son, a hardworking father of two, was stunned. He had spent the past week traveling in Montana for the company, racking up hundreds of dollars in gas, food and lodging expenses. To make things even worse, just the day before, his company car had broken down in Missoula and company officials told him to leave it for repairs and rent a car to make the trip home. Now, these expenses were on his personal credit card, per company policy, and the company would not be paying them.

While financial concerns for his family gave him anguish, my son’s heaviest burden was calling each of his drivers and distributors to tell them they no longer had a job – and they wouldn’t be paid for the past week’s work.

The calls were not easy. Most thought he was kidding. He had to convince them it was true – their company was out of business. They had no job. They would not be receiving pay for the past week. Stunned silences followed once the impact struck home.

Far away from the difficult phone calls my son was making to let co-workers in Washington, Idaho, Montana and Alaska know they no longer had a job, Wall Street and banking giants received good news – they were receiving a $700 billion bailout.

Now back to that trickle-down theory. Will the bailouts the big companies are getting, trickle down to American workers? Will anything trickle down in time to save jobs, houses, families?

It turns out my son’s company was enmeshed with Wachovia and went down with that banking and investment giant. Now the question becomes, will the recent news that Wachovia has been saved by a merger with Wells Fargo mean anything to those who face financial ruin from the loss of their jobs? Will the influx of money from the merger trigger a loan to his company that will get employees back to work in time to save product, assets, customers?

One week after he lost his job, my son was informed his company will begin operating under Chapter 11 Bankruptcy with a small group of key people. Although neither he nor any of his distributors were offered their jobs back, the company has been court ordered to pay employees for their last week’s work.

That means my son may receive the nearly $3,000 they owe him in salary and expenses – but he, like hundreds across America, is still out of work – waiting for the trickle.

I hope it comes in time.