Trickle-down economics assumes that investors, savers, and company owners are the real drivers of growth. It expects these entities will use any extra cash from tax cuts to expand businesses. Investors will buy more companies or stocks. Banks will increase lending. Owners will invest in their operations and hire workers. All of this expansion will trickle down to workers. They will spend their wages to drive demand and economic growth.1
NOTE EU-Digest: Trickle down economy is a total scam, and has given Corporations far too much economic and political power. This trend can only be turned around today, by a revigorised, strong, organized, and unionizsc, labour force.
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Trickle-Down Economics: Theory, Effect, Results
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