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? asked in Politics & GovernmentLaw & Ethics · 1 decade ago

Why doesn't Trickle Down Economics work tax cuts for the Rich/Wealthy and tax cuts for Big Corporations create?

Why doesn't Trickle Down Economics work tax cuts for the Rich/Wealthy and tax cuts for Big Corporations create Jobs ?

5 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    Because on a dollar for dollar basis, the wealthy do not spend as much of their marginal income. They save and invest, which it's true can cause some trickle down, but not as much as it costs the government to give those tax cuts. Giving the poor and middle class money results in direct and immediate expenditure of almost all of the money. Increased revenue makes businesses expand, causing growth.

  • foh
    Lv 4
    5 years ago

    i will clarify this as in simple terms as a chance. wealthy people are the persons that personal businesses. Even wealthy persons that do not personal businesses nonetheless placed a large form of money into the commercial gadget buying homes, automobiles, making an investment, etc. corporation owners are more desirable in all chance to employ new workers at the same time as their taxes are low. regardless of in the journey that they do no longer employ new workers, the money will bypass again into the commercial gadget. The corporation owners will purchase new kit, new computers, more desirable inventory that they would not purchase less than well-known circumstances. Trickle down economics does artwork.Reagan created 20 million jobs in 8 years utilising it. the reason it extremely works is that it does no longer bypass antagonistic to the grain of trouble-free economic ideas. Tax and Spend takes money out of peoples wallets interior the shape of laborious taxes that fund irresponsible gov spending. Trickle down places more desirable money in each and every individual's fingers and shall we the guy settle on the position that money must be spent.

  • 1 decade ago

    Trickle Up Yours.

  • Anonymous
    1 decade ago

    it does work, when the rich invest it creates jobs

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  • Anonymous
    1 decade ago

    Question understand not can i.

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