The Myth of “Trickle-Down Economics”


“Trickle-down economics” is a term we commonly hear thrown around in the political sphere. The term is usually thrown about by so called ‘progressive’ political and 6176100447_40134ff56c_trickle-down-economicsmedia pundits to attack free markets and to advocate government intervention in the economy.

So what economic theories lie behind trickle-down economics, and who is advocating for it? That’s right – no one.

Although the term has existed for quite sometime, and has been attributed to comedian Will Rogers during the Great Depression, it was used by opponents to attack President Ronald Regan’s economic reforms despite the term never being used by his administration.

Like the Easter Bunny, “trickle-down economics” doesn’t exist. But unlike the Easter Bunny, those who talk about trickle-down economics have created, and attack, a straw man purporting that this is what their opponents are advocating when in fact they are not.

Trickle-Down Economics Doesn’t Actually Exist

Contrary to common belief, “Trickle-Down Economics” doesn’t actually exist. Outside of political punditry – where the non-existent theory continues to be referenced – it’s not actually found in academia. Specifically, it’s not a belief, theory, or a school of thought taught anywhere inside the economics discipline, and never was.

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Posted by We Are Capitalists on Sunday, August 23, 2015

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