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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For that 20 per cent, there is no trickle-down economy - just a breadline existence and zero-hours contracts.
The real concern here is that the change will have a significant trickle-down effect because many states and colleges use the federal formula when awarding need-based aid," said Brian Fitzgerald, formerly of the Congressionally appointed Advisory Committee on Student Financial Aid.
In addition to bailing on Whoopi, the Kerry "support" has had a chilling trickle-down effect on other groups.
Of the Federal Communication Commission's recent crackdown on lewd content on television and radio, Love said, 'Is this like Reagan trickle-down economics?
It's fair to wonder where the trickle-down is from all this great free trade stuff and why we should be excited that more of it, the Free Trade of the Americas Act, is on the way.
Citgo has kept B and M Oil's delivery trucks loaded with crude, but Beavers is worried about the trickle-down effect, especially since Citgo's credit rating was downgraded in January.
The insurance industry might see a trickle-down effect.
There's still a trickle-down effect of the drastic cuts in the National Endowment for the Arts over a decade ago.
Call it trickle-down aesthetics: Word has finally reached Washington that there's more to life than painting.
The need for dedicated aftersales centres was highlighted by the fact that between 1997 and 1998 Daewoo achieved a growth in sales of 39 per cent and the resulting trickle-down effect meant that there was high demand for aftersales provision.
In one of my favorite moments, the sweetly prissy but shoot-from-the-hip chef, Ted, admonishes Hudson and the stiff-lipped captain for their trickle-down disunity.
What's more, even Y2K-compliant PLCs may be vulnerable to trickle-down effects from seemingly innocuous, non-compliant devices.