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Topic: Trickle down economics


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In the News (Tue 8 Dec 09)

  
  Trickle-down theory - Wikipedia, the free encyclopedia
The idea that the top of the economic structure produced growth and benefits, which then moved down in the form of increased wages was promoted by, among others Henry Ford and was rooted in that era's interpretation of Say's Law.
Trickle Down Economics was coined from a speech made by David Stockman, who was Ronald Reagan's chief economic advisor.
Trickle down was used to justify a range of changes under both British Prime Minister Margaret Thatcher and President Ronald Reagan, specifically those which attempted to break the power of unions, reduce impediments to hiring and firing, reducing environmental regulation, and in general pursue a less anti-corporate stance to legislation and economic policy.
en.wikipedia.org /wiki/Trickle-down_theory   (596 words)

  
 Trickle down effect - Wikipedia, the free encyclopedia
In economics the trickle-down effect is believed to be central to conservative economic theory, despite the fact that, according to laissez-faire economist Thomas Sowell, no conservative economist has ever advocated such a theory [1].
This tenet is central to Supply-Side economics, a version of laissez-faire economics, and it was a highly charged issue during the Reagan Administration.
To put this in more concrete terms, an individual who enjoys the benefit of a tax reduction could decide to work more, because the marginal value of his or her labor is higher, or decide to work less, because the value of time off is greater, to him, than more money would be.
en.wikipedia.org /wiki/Trickle-down_effect   (2209 words)

  
 Encyclopedia: Trickle down effect   (Site not responding. Last check: 2007-10-22)
Supply-side economics is a school of macroeconomic thought which emphasizes the importance of tax cuts and business incentives in encouraging economic growth, in the belief that businesses and individuals will use their tax savings to create new businesses and expand old businesses, which in turn will increase productivity, employment...
Keynesian economics, or Keynesianism, is an economic theory based on the ideas of John Maynard Keynes, as put forward in his book The General Theory of Employment, Interest and Money, published in 1936 in response to the Great Depression of the 1930s.
Keynesian economics (pronounced kaynzian) or Keynesianism, is an economic theory based on the ideas of John Maynard Keynes, as put forward in his book The General Theory of Employment, Interest and Money, published in 1936 in response to the Great Depression of the 1930s.
www.nationmaster.com /encyclopedia/Trickle-down-effect   (3687 words)

  
 More on Economics
Economics is said to be positive when it attempts to explain the consequences of different choices given a set of assumptions, or a given set of observations, and normative when it prescribes that a certain action should be taken.
Economics may in principle be, and increasingly is, applied to any problem that involves choice under scarcity or determining economic value, in fact, the allocation of scarcity is considered basic to many definitions of economics.
The term economics was coined around 1870 and popularized by influential "neoclassical" economists such as Alfred Marshall, as a substitute for the earlier term political economy, which referred to "the economy of polities" – competing states.
www.artilifes.com /economics.htm   (3759 words)

  
 Trickle Economics   (Site not responding. Last check: 2007-10-22)
Of course nobody espousing supply-side economics used the term "trickle-down", simply because it was coined as a pejorative term by the sceptics.
Supply-side economics was based on the claim that tax cuts for the rich would increase rather than decrease total tax revenue.
The trickle down - aka supply-side - policies of Ronald Reagan, Roger Douglas, Richard Prebble and Bill Birch, in contrast to those of Messers Savage and Nash, have led to diminished rates of economic growth, to dramatic increases in inequality, and to significant shortfalls of public revenue.
www.ak.planet.gen.nz /~keithr/rf98_TrickleEconomics.html   (877 words)

  
 ipedia.com: Trickle-down theory Article   (Site not responding. Last check: 2007-10-22)
Trickle-down theory, also known as trickle down economics, was a term used by detractors of Supply-side economics and its application, particularly by the government of Ronald Reagan.
The "trickle-down" phrase results from a vulgar misunderstanding of keynesian economic theory, suggesting that increases in wealth accrue solely to those fortunate to benefit from increased demand or its subsequent multiplier effects.
The idea that the top of the economic strucutre produced growth and benefits, which then moved down in the form of increased wages was promoted by, among others Henry Ford and was rooted in that era's intepretation of Say's Law.
www.ipedia.com /trickle_down_theory_1.html   (786 words)

  
 CGR: Supply-Side Economics / Trickle-Down Economics   (Site not responding. Last check: 2007-10-22)
The idea of supply-side or trickle-down economics, is, as I understand it, an approach that says when you minimize restrictions on the rich (or at least lower their taxes and offer grants/breaks at the same level offered to po' folk), the rich will stimulate the economy by purchasing stuff.
Typically, supply-side economics is considered to be a republican stance (although there is a lot of crossover with libertarianism).
Supply side economics is based more on industry heads (aka, the rich) being able to expand their supply through more unrestricted use of their profits.
www.christianguitar.org /forums/showthread.php?t=74125   (3403 words)

  
 Clyburn (SC06) - Statement - Recycling Trickle-Down Economics a Mistake
President Bush recently delivered his first State of the Union address, and although he could not take credit for the largest economic expansion in the history of the country, he had the opportunity to give us his vision of how his predecessor’s success could be continued.
Trickle down economics failed because the exorbitant tax cuts for the wealthy, that were meant to stimulate the economy, actually resulted in huge government deficits.
It is failed, trickle down economic policy that needs to remain in the history books as a lesson learned, not a mistake repeated.
www.house.gov /apps/list/speech/sc06_clyburn/cc010301bushsotu.html   (653 words)

  
 FairEconomy.org - Research Library - Trickle-Down Economics: Four Reasons Why It Just Doesn't Work
Let’s look one by one at comparisons of key economic indicators to the top tax rate.
Overall, data from the past 50 years strongly refutes any arguments that cutting taxes for the richest Americans will improve the economic standing of the lower and middle classes or the nation as a whole.
To be sure, the economic indicators examined in this report are dependent on a variety of factors, not just tax policy.
www.faireconomy.org /research/TrickleDown.html   (1177 words)

  
 Trickle-down theory -- Facts, Info, and Encyclopedia article   (Site not responding. Last check: 2007-10-22)
This idea is central to (Click link for more info and facts about Supply Side Economics) Supply Side Economics and it was a highly politically charged issue during the Reagan Administration.
"Trickle Down" became the political phrase which was associated with (The school of economic theory that stresses the costs of production as a means of stimulating the economy; advocates policies that raise capital and labor output by increasing the incentive to produce) supply-side economics.
Trickle Down Economics was coined from a speech made by (Click link for more info and facts about David Stockman) David Stockman, who was Ronald Reagan's chief economic advisor.
www.absoluteastronomy.com /encyclopedia/t/tr/trickle-down_theory.htm   (620 words)

  
 USS Clueless - Vicious and Virtuous Circles
This is particularly true in economic competition, for a large number of reasons, but there are three in particular: economy of scale, network effect, reinvesting the profits.
If the power of government is used to guarantee economic equality within a nation, then everyone in that nation will become equally poor.
But this tendency in many systems for inequalities to be reinforced is not something you can ignore, any more than you can ignore the tendency of some systems to fall apart while others tend to remain stable.
denbeste.nu /cd_log_entries/2003/01/ViciousandVirtuousCircles.shtml   (2041 words)

  
 The Big Picture: 2004: A test of Supply Side economics
What is needed to assess the supply-side impact of the Bush tax overall economic policy program is to assess whether those policies have encouraged greater than normal investment in capital of any or all kinds, and whehter that greater than normal investment has worked out to the general benefit of the economy.
Incorrect, trickle down is the theory that large concentrations of wealth create employment, and therefore leaving them untaxes will create more jobs and money will "trickledown".
Whether trickledown economics works in an internally based economy, where the vast majority of employment is created from franchises, home building and other activities that do not rest on large concentrations of money, is another question.
bigpicture.typepad.com /comments/2003/12/2004_a_test_of_.html   (2833 words)

  
 TAP: Vol 14, Iss. 3. Trickle-Down Pain. Robert B. Reich.   (Site not responding. Last check: 2007-10-22)
The only thing that's actually trickling down -- and will become a torrent in the future -- is the pain of severe cuts in social services that working people and the poor rely on.
In a time of peace and prosperity, further tax breaks for the wealthy (whose after-tax incomes skyrocketed 120 percent over the last two decades) would be grossly unfair, and trickle-down cuts in social services simply cruel.
In a time of terrorism, war and economic hardship, these distorted policies are shameful.
www.prospect.org /print/V14/3/reich-r.html   (787 words)

  
 WorldNetDaily: The real 'trickle-down economics'
It's derisively dismissed as "trickle-down economics" because the theory behind supply-side economics is supposedly that wealth created largely at the top of the economic ladder will "trickle-down" to those at the bottom end.
It seems to me that the real "trickle-down economics" is the system that relies on forcible confiscation of wealth and the redistribution of only a tiny percentage of it.
Next time you hear it, recognize that the real proponent of "trickle-down economics" is the one using the term – and grab hold of your wallet.
www.wnd.com /news/article.asp?ARTICLE_ID=29739   (796 words)

  
 HANDS ON MAGAZINE   (Site not responding. Last check: 2007-10-22)
Though the phrase “trickle-down economics” is really just a pejorative term for supply-side economics, born out of the Reagan administration, the negative connotations associated with the phrase are used intentionally today by critics accusing President Bush of reverting back to the trickle economics of the 1980s.
Trickle economics, as a term, is intended as an economic system wherein no significant barrier exists to the accumulation of wealth by individuals.
Hill summarized the idea of “trickle-down” economics by saying that the idea is that if the wealthy, “upper crust of our society” is given tax breaks, they will use their freed-up wealth to invest in businesses, which will create jobs for other, less wealthy Americans.
campus.northpark.edu /umin/ho/archive/summer04/archive/spring04/discussion.html   (670 words)

  
 Trickle-down Works; Let's Keep It Trickling   (Site not responding. Last check: 2007-10-22)
This is an unacceptable prejudice, of course, and in direct conflict with the acceptable one, that moral superiority resides with the downtrodden.
Because the economic classes have always been fluid in America (alas, in both directions) poor and middle-class Americans have tended not to begrude the class to which they might hope to one day belong.
Trickle-down, it is validly noted, does not reach the poor, i.e., does not trickle down to those not in the marketplace.
home.comcast.net /~m-kollar/Thoughts/others/27.htm   (954 words)

  
 westword.com | News & Features | Feature | Trickle-Down Economics | 2000-10-26
Beyond the windmill, the cattle, the corn and the construction, a low-lying cover of gray clouds stretches in all directions.
A Canadian high-pressure system has shoved cold air down the eastern side of the Rockies from Canada to Mexico, and the condition is expected to linger for a few more unseasonably chilly days.
The front is a sign that nature and man should begin shutting down for the winter.
www.westword.com /issues/2000-10-26/news/feature3.html   (1288 words)

  
 xxx church :: the prayer wall - Trickle down economics   (Site not responding. Last check: 2007-10-22)
If it means "subsidize these businesses so their profits will trickle down", it's a sham.
This is not Reagan's invention, it is known in economic circles as Keynesian economics, and has been practiced pretty equally by both parties in the last 25 years.
And like I said, it's really Keynesian economics that we've now had 24 years of, both parties believe in it, and that's why we're headed into the crapper.
www.xxxchurch.com /forum/topic.asp?TOPIC_ID=9816   (980 words)

  
 Capitalism Magazine: The "Trickle Down" Economics Straw Man by Thomas Sowell
A critic of India's change from a government-dominated economy to more free market activity in the 1990s accused those behind this change of having "blind faith in the 'trickle-down' theory of distributing the benefits of economic growth among different socio-economic groups in the country." But free-market economics is not about "distributing" anything to anybody.
In India, in the decade since the 1991 economic reforms which were condemned as "blind faith," the country's economic growth rate has soared.
Even in a prosperous country like the United States, there is no need to forego economic benefits for the sake of a political phrase.
capmag.com /articlePrint.asp?ID=1115   (825 words)

  
 BYU NewsNet - Trickle down economics works   (Site not responding. Last check: 2007-10-22)
In the letter, "Where are the facts?" the author requests evidence from those who support conservative economic values and he attacks the idea of trickle down economics [tax breaks to the rich that result in jobs "trickling down" to the poor].
A study done by the Joint Economic Committee of Congress tracked the income of 14,351 randomly selected people during the Regan's trickle down economics era [1979-1988].
But even if you don't buy any of these statistics, trickle down economics is justified on a moral level.
newsnet.byu.edu /story.cfm/49063   (307 words)

  
 Trickle-down Economics and Ronald Reagan
Tricklenomics is not a defined word, but from context it is clearly intended to be an economic system where there is no significant barrier to the accumulation of wealth by individuals.
To qualify as TDE a country must have either a low or flat rate tax on income or only a mildly progressive one (to insure that the rich can continue to get richer, or to trick the poor and middle income people into thinking they can get more and keep it).
Low (or lower) tax rates have resulted in economic growth and increased tax revenues; while higher rates (in the 1930's, 70's and 90's) have either reduced revenue or lowered the growth of revenue.
www.bigissueground.com /politics/blair-trickledownreagan.shtml   (5069 words)

  
 The Myth of Corporate Giving, Trickle-Down Economics Worldwide, by Bradley Steinbacher (01/17/02)
And while such a scenario may seem, at first glance, laughably farfetched, it should be noted that the economic ideology of the U.S. has long been fashioned around the idea of corporate health.
Think Reagan's "trickle-down economics," wherein the theory holds that the stronger the upper crust of America (i.e., corporations), the more crumbs sprinkle down for the rest of society to pick up.
Globalization has brought Reaganite TDE to the world, creating huge profits for CEOs and stockholders while blatantly exploiting the people of less powerful countries.
cgi.thestranger.com /2002-01-17/logo4.html   (572 words)

  
 The Idea Shop: trickle-down economics   (Site not responding. Last check: 2007-10-22)
But best of all, he explains everyday economics to us non-econ types in an easily understandable way.
After all, a basic result from property rights economics says the amount people will spend to measure and delineate property—including water—depends on its market value (think how carefully we measure diamonds, or gasoline at the pump, compared with water from from the sink…).
As water gets more expensive, look for more metering of apartments and rooms within shared housing, waterless technologies for the home and garden, and devices that help cut household water bills.
the-idea-shop.com /article/16/trickle-down-economics   (700 words)

  
 Trickle-down Economics: The Fundamental Reason Why it Cannot Work
But there is no more cause for this to happen than there is for the wealth of a farmer to trickle down into the feeding trough of his plough horse.
The profit of the favoured few does not therefore trickle down to the wage packets of those who generate it.
Far from being vital to the economic needs of the favoured few, the consumer market is merely a bonus which adds to their pleasures.
www.robmorton.20m.com /ideology/capitalism/philosophy/trickle.htm   (1445 words)

  
 Re: Trickle down vrs trickle up economics
In the US a huge problem with all 'trickle up' policies is that they require legislative intervention.
In short, 'trickle up', 'share the wealth' policies are regarded as un-American.
What I'm trying to come around to: "trickle up" for good or evil has been in place seventy years, at least as government policy, and it certainly hasn't eliminated the poor, it has probably increased.
www.mail-archive.com /brin-l@mccmedia.com/msg19810.html   (736 words)

  
 CGR Community - Supply-Side Economics / Trickle-Down Economics   (Site not responding. Last check: 2007-10-22)
Graphs fail to be precise enough because of our limited, vague knowledge of human response and the present state of any said market and historical reference fails because we cannot knowledge all the causes and effects of certain political systems on the economy.
They are not conclusive, but like any field of science, economic science uses the past experiences to affect the present thinking.
The problem is that these economic problems have the potential to cause mass suffering and the weakening of america to the point that "foreign evils" could take us over to an unknown end.
www.christianguitar.org /forums/archive/index.php/t-74125.html   (5719 words)

  
 Economic Justice, Fairness and Equality of Opportunity   (Site not responding. Last check: 2007-10-22)
While public policy should not compel individual moral beliefs or practices, and economic policy should not be used to enforce personal ethics, such policy perhaps should at least be consistent with values such as compassion which, like the justifications for public policy themselves, are based on the manner in which we interact with others.
There are success stories: Despite their own ups and downs, Germany and Japan have recovered from the physical, spiritual and economic devastation of 1945 to become economic superpowers.
Yet those who have inherited unearned wealth in these modern feudal economies still refuse to accept economic reforms to restore any portion of such wealth to the heirs of those from whom it was taken by force, who are still forced to accept an unequal economic contract, with a result of widespread poverty.
www.wordwiz72.com /econ.html   (6847 words)

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