Trickle down


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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 ?
The Democrats pound away at the idea that "trickle down" means the wealthy will spend more and that will "trickle down" to us little people.
so that the benefits of CPEC could trickle down to the common man.
Accordingly, the government should behave prudently and shift its focus from trickle down policy to pro-poor interventions and ensure the economic safety of common Pakistanis besides the security.
If the people at the top of the pile fill their glasses, they will let their wealth trickle down to those at the bottom.
Despite poor economic data, with a contraction of 0.6% in the eurozone in the last quarter of 2012 (compared to the previous one), the ECB remains convinced that improved market conditions will eventually trickle down to the real economy.
Economic growth ushers many positive changes and if the government and the business sector will properly manage growth, the benefits will ultimately trickle down to the masses.
For the first time for generations we see the trickle down of wealth from the top to the bottom has reversed direction.
TRICKLE DOWN TYRANNY: CRUSHING OBAMA'S DREAM OF THE SOCIALIST STATES OF AMERICA offers political collections a call to arms attacking Obama's policies and years in office, and will especially appeal to holdings catering to right-wing readers.
The pair are current world champions and tipped for stardom by Romero, who feels they have benefited from the "trickle down" effect that comes from Olympic success.
Real estate transactions are likely to increase this year due to the "trickle down" effect as Sharjah residents move to Dubai where rents are "softening," said Ian Albert, Regional Director of Colliers International.
29 -- Sri Lankan government will set up nearly one million cottage industry units in a bid to allow the benefits of development trickle down to grassroots.
I've heard recently that trickle down economics doesn't work.