<span class=”Apple-style-span” style=”border-collapse: separate; color: #000000; font-family: 'Times New Roman'; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; font-size: medium;”> Trickle-down economics is a political theory that is based on the idea that if you give tax breaks to the rich in society, all others will benefit from the extra money that they will be able to put back into society. A rich person will be able to buy more items, and put more money into the pockets of those that make the goods. Trickle-down economics was one of the main political theories that was pushed by former President Ronald Reagan. He was in full support of giving the needed tax cuts to the rich to institute his programs for trickle-down economics. There were many Reagan Democrats that believed that they would eventually be benefited by the plan. The problem with the political theory of trickle-down economics is greed. Most rich people will take the money that they would be saving from the tax break and reinvest it in themselves. They will take the money and put it into the stock market or other areas in which they invest. While this reinvestment in the stock market will stimulate the stock market, most average Americans do not hold enough stock to be benefited in trickledown economics. The only ones that will benefit are the other rich people that have enough money to invest in large amounts of stock. Trickle-down economics is sometimes referred to as trickle-over economics since it usually only benefits the people that are at the upper echelon of our monetary society. There are a few other countries that have attempted trickle-down economics, but the ideas have failed in those countries as well. Trickle-down economics has become a badgering point for the Democrats whenever Republicans attempt to pass any tax cuts that would only benefit the rich in society. The Democrats believe that the trickle-down economics political theory was the cause of the plummeting of the stock market in the late 1980s and early 1990s. There are very few Republicans that will ever refer to trickle-down economics because of the negative connotation that the political theory has gained. They will attempt to stay away from the idea as much as possible. Trickle-down economics was tried for a while in the United States, and will probably never be tried again. There are too many people that believe that it is a horrible political theory.
There are many political theories that look great on paper, but they never end up working in society. Trickle-own economics is one of those political theories.
