Trickle down


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Related to Trickle down: Trickle down theory, Trickle down economics

Trickle down

An economic theory that the support of businesses that allows them to flourish will eventually benefit middle- and lower-income people, in the form of increased economic activity and reduced unemployment.

Trickle Down Theory

An informal term for a macroeconomic theory that a government can best promote growth by providing incentives for persons to produce goods and services. The primary way a government does this is by maintaining low tax rates so that investors and entrepreneurs may invest their money in production. Maintaining low tax rates on the wealthy is one of the most important and controversial aspects of trickle down theory; the theory states that if well off persons have the capital available to produce goods and services, they create jobs and thereby grow the economy. In other words, the growth "trickles down" from the wealthy to the remainder of the economy. Critics contend that this does not happen in reality and that the wealthy are more likely to keep, rather than invest, their money. In the United States, trickle down theory was crucial to the economic policy of the Ronald Reagan administration. See also: Keynesian economics, Monetarism, Thatcherism.
References in periodicals archive ?
Trickle down economics is not so much a legislative policy and more a law of nature.
WASHINGTON -- Federal regulators on Friday banned excessive fuel surcharges by railroads and imposed strict rules on the fees that many companies this week credited with bolstering their quarterly earnings, though the savings were unlikely to trickle down to consumers.
There is a trickle down effect of energy prices through all goods and services," said Kenneth McCarthy, an economist at Cushman & Wakefield.
According to a source based in the South, producers of primary PET have announced price increases, but they have yet to trickle down to the secondary market.
That rich people will spend their money, which eventually will trickle down to the poor.
making our customers more profitable, helping them make theirs more profitable and reap the trickle down effect.
The obvious trickle down effect of all this success means that more money will be spent in radio.
Although fashion trends from influential European textile shows in Milan and Paris will eventually trickle down into color cosmetics, the process can take at least six months to reach beauty products, according to experts.
Virgin producers are expected to seek more increases in 2004, which will trickle down to recycled resins.
If only that oil money could actually trickle down to the people and communities who need it most--the 1.
It's only a matter of time before HIPAA guidelines trickle down and are required for all firms handling confidential private data.