Where did trickle-down economics come from?
Where did trickle-down economics come from?
The first reference to trickle-down economics came from American comedian and commentator Will Rogers, who used it to derisively describe President Herbert Hoover’s stimulus efforts during the Great Depression. More recently, opponents of President Ronald Reagan used the term to attack his income tax cuts.
Who created the trickle down effect?
Rudolf von Jhering
The trickle-down effect can trace its origins to the 19th Century, with the work of Rudolf von Jhering, who was the first to write about cultural diffusion. He traced how fashions filtered down from the upper classes to the lower classes.
When was trickle-down economics first used?
In the media and among pundits, the term “trickle-down economics” is used a lot. The expression was reportedly first used in the 1930s by Will Rogers and was later adopted by those who opposed Ronald Reagan’s 1981 tax cuts as a pejorative and derisive description of what is appropriately called supply-side economics.
What was the idea behind trickle-down?
Trickle-down economics is a theory that claims that benefits for the wealthy trickle down to everyone else. These benefits are tax cuts on businesses, high-income earners, capital gains, and dividends.
Did Reagan invent trickle-down economics?
President, the trickle-down theory attributed to the Republican Party has never been articulated by President Reagan and has never been articulated by President Bush and has never been advocated by either one of them.
Did Milton Friedman support trickle-down economics?
Chicago bears the mark of historical connection with trickle-down economics, which was promoted by economists, such as Milton Friedman, at the University of Chicago in the fifties. Today, those who believe in this economic theory would much rather it be called “supply-side” or “pro-business.”
Did Ronald Reagan say trickle-down economics?
Who formulated the trickle-across principle?
Coined by economist Thorstein Veblen in 1889, the trickle-down theory of fashion adoption assumes that fashion begins in the upper echelon of society. Styles worn by the wealthy change, and those changes are gradually adopted by the middle and lower classes.
Was trickle-down economics successful?
The past 40 years have seen a gradual decrease in the top bracket’s income tax rate, from 91% in 1963 to 35% in 2003. It went as low as 28% in 1988 and 1989 due to legislation passed under Reagan, the trickle-down theory’s most famous adherent.
Why did Reaganomics not work?
Cuts worked during Reagan’s presidency because the highest tax rate was 70%. They have a much weaker effect when tax rates are below 50%. Reaganomics would not work today because tax rates are already low compared to historical levels of 70%.