Sunday, June 1, 2014

Daily Question: Trickle- down economics

Do trickle-down economics work?


     NO! The trickle down effect does not work due to the fact it makes the rich richer and the poor poorer, it only increases the gap between the two classes. It encourages the rich to be greedy. Also you can't continue to supply something that no one wants to buy. With supply-side economics, corporate taxes are lowered to form a greater amount of funds for creating jobs and increasing production, with services and prices then at a much lower price, therefore assuming that this would make those products more reasonable and so more people would be buying them. But, if the consumer simply doesn't want or have the ability to purchase these items, making more of them doesn't help.

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