A quick explainer of how “trickle-down economics works”…
The top 1% hoard all the wealth.
That’s it. That’s the whole con.
That’s it. That’s the whole con.
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TinyViolins · 31-35, M
The way I've had to explain it to people is like this, if you won a large sum of money, would you start spending right away, or would you wait until expenses came up? I figure most people would be buying or upgrading things, paying off debts, and maybe taking a nice vacation
The reality is that the business class would use the money saved from tax cuts right away to expand or fund different initiatives. It does provide a lot of economic activity and new jobs for about a year and a half, maybe 2 years, but eventually these businesses spent all they cared to spend and then economic activity goes down.
That's how trickle-down economics has always worked. The phenomena was studied 100 years before Reagan tried his hand at it. GDP did grow for like 2 years after Reagan's tax cuts, but then growth started slowing more and more until it actually shrunk at the end of his term, leading to the Savings and Loan Crisis
The reality is that the business class would use the money saved from tax cuts right away to expand or fund different initiatives. It does provide a lot of economic activity and new jobs for about a year and a half, maybe 2 years, but eventually these businesses spent all they cared to spend and then economic activity goes down.
That's how trickle-down economics has always worked. The phenomena was studied 100 years before Reagan tried his hand at it. GDP did grow for like 2 years after Reagan's tax cuts, but then growth started slowing more and more until it actually shrunk at the end of his term, leading to the Savings and Loan Crisis
