Tuesday, July 09, 2019
"Trickle-Down" Economics Started As A Joke - And It Still Is
The policy is commonly called "Trickle-Down" economic theory. It says that the way to a better economy for everyone is to give more to the rich. They say when the rich get more the money trickles down to everyone else.
This is a failed economic theory, and always has been. Nothing trickles down. The bank accounts of the rich just get fatter -- and the rest of America is left to suffer. Americans simply cannot feast on the table scraps left by the rich.
Now the International Monetary Fund (IMF) tells us what most of us already knew -- that trickle-down economic theory does not work. It actually has a negative effect on economic growth, while giving more to the poor and working classes has a positive effect.
Here is an excellent discussion on the failure of trickle-down policy by Jared Keller at the Pacific Standard website: