"Trickle-Down Economics"

(noun)

A term in United States politics that refers to the idea that tax breaks or other economic benefits provided by government to businesses and the wealthy will benefit poorer members of society by improving the economy as a whole.

Related Terms

Examples of "Trickle-Down Economics" in the following topics:

  • Free Enterprise Economics and Reaganomics

    • "Reaganomics" refers to the economic policies promoted by the U.S.
    • His economic policies, called "Reaganomics" by the press, were based on a theory called supply-side economics, about which many economists were skeptical.
    • According to Laffer’s argument, this would eventually translate into more jobs further down the socioeconomic ladder.
    • In other words, proponents of “trickle-down economics” promised to cut taxes and balance the budget at the same time.
    • Critics labeled this "trickle-down economics"—the belief that tax policies that benefit the wealthy will create a "trickle-down" effect to the poor.

  • Budget Cuts

    • Reagan implemented policies based on supply-side economics and advocated a classical liberal and laissez-faire philosophy, seeking to stimulate the economy with large, across-the-board tax cuts.
    • Reaganomics was the subject of debate with supporters pointing to improvements in certain key economic indicators as evidence of success, and critics pointing to large increases in federal budget deficits and the national debt.
    • Reagan's policies proposed that economic growth would occur when marginal tax rates were low enough to spur investment, which would then lead to increased economic growth, higher employment and wages.
    • Critics labeled this "trickle-down economics"—the belief that tax policies that benefit the wealthy will create a "trickle-down" effect to the poor.
    • The widening gap between the rich and poor had already begun during the 1970s before Reagan's economic policies took effect.

  • Debt and the Stock Market Plunge

    • President Ronald Reagan's tenure marked a time of economic prosperity for many Americans.
    • The policies were labeled by some as "Trickle-down economics," because the combination of significant tax cuts and a massive increase in Cold War-related defense spending caused large budget deficits, the U.S. trade deficit expansion, and the stock market crash of 1987, all of which contributed to the Savings and Loan crisis.

  • The Poor, the Homeless, and the Victims of AIDS

    • Park benches started to be designed so that no one could lie down on them.
    • Political opponents chided his "Trickle-down economics" policies due to the significant cuts in taxes for the wealthiest Americans; supporters pointed to the drop in poverty after his policies took effect to validate that the tax cuts did indeed trickle down to the poor.

  • The Conflict Perspective: Class Conflict and Scarce Resources

    • According to conflict theory, capitalism, an economic system based on free-market competition, particularly benefits the rich by assuming that the "trickle down" mechanism is the best way to spread the benefits of wealth across society.
    • Whether the benefits of these tax breaks have made their way down to ordinary people through better business practices or better working conditions for Wal-Mart employees is questionable.
    • Functionalists criticize this approach by arguing that people do not always act largely out of economic self-interest.

  • Forces in Consumerism

    • Consumerism is a social and economic order that encourages the purchase of goods and services in ever-greater amounts.
    • In economics, consumerism refers to economic policies that place emphasis on consumption.
    • He coined the term "conspicuous consumption" to describe this apparently irrational and confounding form of economic behavior.
    • While previously the norm had been the scarcity of resources, the Industrial Revolution created a new economic situation.
    • Consequently, upper class tastes, lifestyles, and preferences trickle down to become the standard for all consumers.

  • The Decimation of the Great Bison Herds and the Fight for the Black Hills

    • By 1872, territorial officials were considering harvesting the rich timber resources of the Black Hills, to be floated down the Cheyenne River to the Missouri, where new plains settlements needed lumber.
    • Prospectors, motivated by the economic panic of 1873, began to trickle into the Black Hills in violation of the Fort Laramie Treaty.
    • This trickle turned into a flood; thousands of miners invaded the Hills before the gold rush was over.

  • General Purpose

    • As he or she further hones the purpose and thesis, the speech might trickle down into instruction about why it is important to specify one's privacy settings.
    • Again, this speech take a topic like Facebook and refines it down to a purpose, like persuasion.
    • The widest part is the topic; as the speaker refines and hones his or her purpose into a thesis and supporting arguments, he or she narrows the speech down.

  • Sensitivity to Human Relations

    • Positive attitude – A confident and upbeat personality tends to trickle down through work groups

  • Managing to Prevent Fraud

    • Whatever tone management sets will have a trickle-down effect to the employees.