What is trickle down economics in simple terms?

Trickle-down economics, or “trickle-down theory,” states that tax breaks and benefits for corporations and the wealthy will trickle down to everyone else. It argues for income and capital gains tax breaks or other financial benefits to large businesses, investors, and entrepreneurs to stimulate economic growth.

Does trickle down economics work?

Essentially, trickle-down doesn’t work because lower taxes on the wealthy doesn’t create more employment, consumer spending or regained revenue. Income inequality has reached its highest point in 50 years, and money keeps accumulating at the top.

What’s the meaning of trickle down?

Definition of trickle-down 1 : relating to or working on the principle of trickle-down theory trickle-down economics. 2 : relating to or being an effect caused gradually by remote or indirect influences.

What is another word for trickle down?

Trickle-down synonyms In this page you can discover 5 synonyms, antonyms, idiomatic expressions, and related words for trickle-down, like: spillover, dry up, wither-away, in combination and knock-on.

Who believed in the trickle down economics?

The first reference to trickle-down economics came from American comedian and commentator Will Rogers , who used it to derisively describe President Herbert Hoover’s stimulus efforts during the Great Depression. More recently, opponents of President Ronald Reagan used the term to attack his income tax cuts.

Is supply side economics the same as trickle down?

Trickle-down economic theory is similar to supply-side economics. That theory states that all tax cuts, regardless of whether they are for businesses or workers, spur economic growth. Trickle-down theory is more specific. It says targeted tax cuts work better than general ones.

Is trickle down economics a Ponzi scheme?

That trickle-down economics, or Reaganomics, was a Ponzi scheme has been made sufficiently evident by the result, which has been a massive concentration of wealth in the hands of the wealthiest at everyone else’s expense, including the expense of the overall wealth of the economies that bought into it.

Where did trickle down economics originate?

As with many popular terms, the origin of the idiom ‘trickle down’ comes directly from the world of politics. It was first used as an adjectival phrase in 1944, but it dates back even further, to the days when American president Theodore (Teddy) Roosevelt introduced the idea of New Nationalism.