Trickle Down Theory

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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.
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If that's trickle down economics, then we're willingly embracing a model of a very clearly cut, divided society.
For younger readers – or anyone who fancies a good laugh – trickle down economics was a theory much favoured by 80s Conservatives.
10) does a great job of defending trickle down economics.
The current Bush wants to do trickle down economics all over again, but in addition clearly promises to spend every dollar first on tax cuts favoring the wealthiest 1 percent, then spend the same dollar a second time on education, debt relief, military pay, space wars, etc.
In his first budget there was an increase in taxes on the 'rich' justified as a repudiation of the trickle down economics, a phrase oft-repeated by Clintonians as the centrepiece of the policies of the 1980s.
Trickle down economics still works far better than trickle up economics and providing government "stimulus" money, and is superior to any socialist economic society I have ever studied.
As Usual Neither McCain or Obama are providing specific solutions to help nation's 23 million small businesses, besides trickle down economics Bailout the Privileged Few and Forget Main Street?
Instead of hearing about how helping Wall Street will help Main Street as a result of trickle down economics, let's hear specific solutions that will directly impact small business owners.
I've heard recently that trickle down economics doesn't work.