Trickle Down Theory

(redirected from Trickle-down economics)
Also found in: Wikipedia.

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.
Mentioned in ?
References in periodicals archive ?
The argument made by the proponents of the JCPOA that lifting sanctions would expand the economic pie and benefit everyone is a version of trickle-down economics that has proved unreliable in many other contexts.
A return to relying on the disproven theory of trickle-down economics would only serve to exclude the vast majority of hard-working Bunny Ranch clients from having the discretionary income to enjoy with their favorite Bunny.
Don't they see that trickle-down economics is failing?
Pope Francis has correctly noted that trickle-down economics has never promoted "greater justice and inclusiveness.
does not let himself be deceived by trickle-down economics.
This isn't trickle-down economics, its osmosis economics: sustainable, community-based enterprise that yields economic and social dividends for the country as a whole.
THE biggest lie of our lives has been trickle-down economics.
Here's an idea: Cancel the unemployment insurance program and direct the unemployed to the millions of high- paying jobs that decades of trickle-down economics has created.
Understandably, for Modi -- a votary of trickle-down economics -- the rights-based legislative framework that the Congress has introduced and proposes to expand in the future comes as a huge challenge.
His recent 50,000-word exhortation to the faithful included a point-blank denunciation of trickle-down economics and a reminder that Jesus' teachings require offering compassion to the poor.
Middle-class paranoia, trickle-down economics and valium abuse should feature heavily when you play as Michael.