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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Overall, the patterns of findings in Table 1 provide little support for the trickle-down theory.
This is based on the trickle-down theory of economics.
These agencies and their experts went out to the developing world to urbanize, industrialize, and modernize it with promises of mass prosperity in accordance with the trickle-down theory of economics.
Properly qualified, one of the major points of trickle-down theory is a good one: Confiscatory tax rates on a nation's most productive citizens are indeed, as Britain discovered, a blueprint for economic decline.
By dividing the rural economy into two sectors, farm and non-farm, the author has empirically tested the trickle-down theory of growth.
The beneficiaries through the trickle-down theory are another 7 percent.
And I write for people like me who are just tired of the trickle-down theory where some guy spends ages and pages in some fat book where everything including the draperies, which happen to be burnt orange, is described, and further, is some metaphor for something.
They' will benefit through the trickle-down theory.
Would the trickle-down theory prevail, or would decisions be based on a preferential option for the poor?