What is meant by the trickle down effect?

The trickle-down effect is a term used in marketing and advertising. It can refer to the notion that fashion trends “trickle-down” from upper-class citizens to lower-class citizens, or that as a product becomes widely adopted, the price falls.

What is trickle-down economics quizlet?

Trickle down economics. Economic theory that holds that money lent to the bank and business will trickle down to customers. Bonus army. A group of WWI veterans who marched on Washington D.C in 1932 to demand early payment of a bonus promised them by congress for their military service.

Why is it called trickle-down economics?

In the media and among pundits, the term “trickle-down economics” is used a lot. The expression was reportedly first used in the 1930s by Will Rogers and was later adopted by those who opposed Ronald Reagan’s 1981 tax cuts as a pejorative and derisive description of what is appropriately called supply-side economics.

What was Reagan’s trickle-down economics?

Reaganomics was influenced by the trickle-down theory and supply-side economics. Under President Reagan’s administration, marginal tax rates decreased, tax revenues increased, inflation decreased, and the unemployment rate fell. Current perceptions of Reaganomics are mixed.

Does trickle-down theory 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.

Who termed trickle-down economics?

The term “trickle-down” originated as a joke by humorist Will Rogers and today is often used to criticize economic policies that favor the wealthy or privileged while being framed as good for the average citizen.

Who proposed trickle-down theory?

This idea from Arthur Laffer was termed trickle-down as it suggested that tax cuts will boost economic growth and returns from tax. The US marginal tax rate fell from 70 to 20 between 1980 to 1988, and total receipts moved up to $991 billion from $599 billion between 1981 to 1989 when this theory was applied.

What is another word for trickle-down?

In this page you can discover 5 synonyms, antonyms, idiomatic expressions, and related words for trickle-down, like: spillover, wither-away, dry up, in combination and knock-on.

What is the difference between trickle-down economics and Keynesian economics?

Second, their argument for Keynesian economics actually is a version of trickle-down economics since the people who get money from so-called stimulus programs spend the money, which means it gradually trickles to other people (that part is true, but Keynesians fail to understand that government can’t inject money into …

Who benefits from trickle-down economics?

Trickle-down economic theory states that benefits for the wealthy trickle down to everyone else in the economy. These benefits for the wealthy include tax cuts for dividends, capital gains, high-income earners, and businesses. Trickle-down economics assumes that company owners, savers, and investors drive growth.

How do you use trickle-down in a sentence?

Examples of trickle-down
  1. I know that the economic strength of a nation should ultimately improve the life of everyone, but that trickle-down argument is now discredited. …
  2. We knew that the trickle-down theory of tax would never work. …
  3. At the moment we depend very much on trickle-down, which is a rather slow process.

What word goes with trickle?

  • bleed,
  • exude,
  • ooze,
  • seep,
  • weep.

What is the synonym of trickle?

In this page you can discover 20 synonyms, antonyms, idiomatic expressions, and related words for trickle, like: leak, stream, drift, gush, drip, flow, seep, issue, spurt, water-washed and ooze.