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Please complete this reCAPTCHA to demonstrate that it’s you making the requests and not a robot. Jump to navigation Jump to search This article is about the political term. For the marketing phenomenon, see trickle-down effect. It has been suggested that this article be merged into Supply-side economics. Trickle-down economics, also referred to as trickle-down theory, is an economic theory that advocates reducing taxes on businesses and the wealthy in society as a means to stimulate business investment in the short term and benefit society at large in the long term. The term «trickle-down» originated as a joke by humorist Will Rogers and today is often used to criticize economic policies which favor the wealthy or privileged while being framed as good for the average citizen. In recent history, it has been used by critics of supply-side economic policies, such as «Reaganomics».
It’s kind of hard to sell ‘trickle down,’ so the supply-side formula was the only way to get a tax policy that was really ‘trickle down. Political opponents of the Reagan administration soon seized on this language in an effort to brand the administration as caring only about the wealthy. Multiple studies have found a correlation between trickle-down economics and reduced growth. There are two ideas of government. There are those who believe that if you just legislate to make the well-to-do prosperous, that their prosperity will leak through on those below. The Democratic idea has been that if you legislate to make the masses prosperous their prosperity will find its way up and through every class that rests upon it. This election was lost four and six years ago, not this year.