Trickle down theory
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Trickle down theory is the idea - falsely attributed to conservatives - that helping rich people will indirectly help the poor.
- ... if high income earners gain an increase in salary, then everyone in the economy will benefit as their increased income and wealth filter through to all sections in society.[1]
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.
Actually, as economist Thomas Sowell points out,
- there is no such thing as "trickle-down" economics. Supposedly those who believe in trickle-down economics want to give benefits to the rich, on the assumption that these benefits will trickle down to the poor.
- no economist of the past two centuries had any such theory.[2]