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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Will we ever see an end to the disastrous concept of trickle down economics?
Even if these challenges can be navigated, there is still the rod of the stillborn Australian $60 billion (Dh171.68 billion) corporate tax cut that frames every decrease or underfunded programme as proof of the coalition's blind faith in a theory of trickle down economics that the public has also left behind.
Such a policy will explicitly recognize the failures of the so-called wars on poverty and drugs, call out Trickle Down Economics as a fraud, and chart a middle course which emphasizes positive, inter-related, and locally-focused roles for government, business, and the non-profit sectors.
Aquino said the past administration's trickle down economics was deemed ineffective.
If that's trickle down economics, then we're willingly embracing a model of a very clearly cut, divided society.
It also made me think about the old Thatcherite/ Reaganite lie about trickle down economics. 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. That reminds me of President Ronald Reagan.
They may be dressed up in New Conservative PR speak, but they are a re-hash of what is called "trickle down economics", the principle being that if the bosses are given more money by, say, not introducing employers' national insurance contributions, they will, in turn, employ more people.
Britain's Labour party once stood for a mixed economy and against "trickle down economics" as does Barack Obama and the Democrats today.
Instead, Gore and Bradley seem to have bought into a 1990s' version of the Reagan era's trickle down economics. They may have criticized the idea at the time, but now that our booming economy has turned the trickle into a flood, Gore and Bradley say that it's OK to trim welfare because the market will take care of everyone.
I've heard recently that trickle down economics doesn't work.
While I agree with him about the looming failure, again, of trickle down economics, he lays the blame on big business when also average- and medium-sized investors cheer the growth of their IRAs and other retirement investments.