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The theory that cutting taxes for the corporations and wealthy individuals will stimulate economic growth by increasing the amount of capital available to invest. Some argue that cutting taxes to the poor has a greater effect on the economy since almost all the money that they earn goes directly to buying products and services. President [[Ronald Reagan]] was a proponent of trickle down economics.
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'''Trickle down theory''' is the theory that cutting taxes for the corporations and wealthy individuals will stimulate economic growth by increasing the amount of capital available to invest. Some argue that cutting taxes to the poor has a greater effect on the economy since almost all the money that they earn goes directly to buying products and services. President [[Ronald Reagan]] was a proponent of trickle down economics.
    
[[Category:Economics]]
 
[[Category:Economics]]
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