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A non-partisan explanation of "Trickle Down Economic Theory"

 

In a nu­tshell, trickle-down theory is based on the premise that within an economy, giving tax breaks to the top earners makes them more likely to earn more. Top earners invest that extra money in productive economic activities or spend more of their time at the high-paying trade they do best (whether that be creating inventions or performing heart surgeries). Either way, these activities will be productive, reinvigorate economic growth and, in the end, generate more tax revenue from these earners and the people they've helped. According to the theory, this boost in growth will ultimately help those in lower income brackets as well. Although trickle-down economics is often associated with the policies of Ronald Reagan in the 1980s, the theory dates back to the 1920s. The name also has roots in the '20s, when humorist Will Rogers coined the term, saying, "The money was all appropriated for the top in the hopes it would trickle down to the needy" [source: Shafritz].

 

http://money.howstuf...n-economics.htm

 

howstuffworks.com

 

:lol: what are you, 12?

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What and deprive you of the opportunity to prove my point? :lol:

 

You know, people here were spouting off about trickle down economics and acted as if they knew something about it. They were asked to explain it (and also "middle out economics") to prove a point. You jumped in and did a copy and paste for them because you didn't get what was going on.

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You know, people here were spouting off about trickle down economics and acted as if they knew something about it. They were asked to explain it (and also "middle out economics") to prove a point. You jumped in and did a copy and paste for them because you didn't get what was going on.

 

No I got what was going on. I just decided to derail a BS talking point.

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