2006-11-22 03:16:21 · 3 answers · asked by Anonymous in Social Science ➔ Economics
The problem with trickle down econ is that it is difficult to test exactly how well it works. Asking the 'trickled-down-to' has its limitations. The answers you will get are totally objective. If someone gets fired from their job they think the economy must suck or vice versa if they do well everyone else must be doing better also. Not all industries react the same to different market swings. The average joe does not know the difference of what was ‘trickled down’ and what was the status quo.
If nothing else read the article bellow
This swing also takes time. This is potentially deadly to politicians who only get credit from reform that happens DURING their term. Although its not that cut and dry. If a president implements policy that changes the economy for the better but it takes several years to blossom he may be out of office by then. The man who replaces him will make several changes at the beginning of his term then claim that such growth was from the changes HE implemented. Politics ruins all economic clarity.
With that said the generic theoretical benefit of trickle down economics is that consumers will have more money to spend and that will promote businesses. The validity of this concept has stemmed from its implementation in different developing countries. This “proof” also has its drawbacks
There is no magic pill for any economy
2006-11-25 05:56:01 · answer #1 · answered by Tacereus 4 · 0⤊ 0⤋
Well I can afford to have someone do my yardwork for me!
The economy of the country is doing pretty well as well!
2006-11-24 14:54:29 · answer #2 · answered by battle-ax 6 · 0⤊ 0⤋
As the rich get richer and stay dissatisfied, I get more and better-paying clients.
2006-11-24 15:48:20 · answer #3 · answered by MBK 7 · 0⤊ 0⤋