What is the meaning of the phrase trickle-down?

What is the meaning of the phrase trickle-down?

/ˌtrɪk. əlˈdaʊn/ used to refer to a situation in which something that starts in the high parts of a system spreads to the whole of the system: The supposed trickle-down effect of lower taxes for the rich has not yet resulted in greater prosperity for society as a whole.

Does trickle-down work?

Essentially, trickle-down doesn’t work because lower taxes on the wealthy doesn’t create more employment, consumer spending or regained revenue. Income inequality has reached its highest point in 50 years, and money keeps accumulating at the top.

What is meant by trickle-down effect in economics?

Trickle down economics is a term used to describe the belief that 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.

What does trickle-down to the masses mean?

phrasal verb. If benefits given to people at the top of a society or system trickle down, they are eventually passed on to people lower down the society or system.

What is trickle down effect in poverty?

Back to Basics: The Theory The proponents of trickle-down economics, argues that rising incomes at the top end of the spectrum would lead to more jobs, more output, more income and less poverty as the growth and higher incomes at the top end will move at the lower end and to the poor.

What is an example of trickle-down economics?

Major examples of Republicans supporting what critics call “trickle-down economics” include the Reagan tax cuts, the Bush tax cuts and the Tax Cuts and Jobs Act of 2017.

How do you use trickle-down in a sentence?

It is no good telling people in the north that there will be a trickle-down effect from the prosperity of the south-east. When it comes to eucalyptus plantations, the trickle-down theory sounds rather more like the soak-up theory. I used to experiment with trickle-down and sandcastles.

What is trickle-down economics?

Trickle-down economics posits that tax cuts for the wealthy indirectly enrich others. relating to a situation in which something that starts at the top of an organization, system, etc. spreads to all of it: When retailers are not selling goods, there is a trickle-down effect, and we will see a broader slowdown across many sectors.

What is the meaning of the name trickle down?

Meaning of “trickle-down” in the English Dictionary. “trickle-down” in English. › used to refer to a situation in which something that starts in the high parts of a system spreads to the whole of the system: The supposed trickle-down effect of lower taxes for the rich has not yet resulted in greater prosperity for society as a whole.

What does Arthur Okun mean by trickle down?

Although “trickle-down” is commonly mentioned in reference to income, Arthur Okun has used it to refer to the flow of the benefits of innovation, which do not accrue entirely to the “great entrepreneurs and inventors,” but trickle down to the masses.

What is the difference between trickle-down theory and supply-side theory?

In recent history, the term has been used by critics of supply-side economic policies, such as ” Reaganomics “. Whereas general supply-side theory favors lowering taxes overall, trickle-down theory more specifically advocates for a lower tax burden on the upper end of the economic spectrum.