Sowell states that "no such theory has been found in even the most voluminous and learned histories of economic theories." That's from a scholar who has published extensively in the history of economic thought. Several years ago, Sowell, in his syndicated column, challenged anyone to name an economist from any economic school of...
I think the idea of trickle down economics springs from the idea that rich people, having made a lot of money from their investments or high salaries/bonuses tend to spend the money, buying things such as houses, cars, jewelry, etc., which means that they are injecting money into the system, fueling the churning of money, as it turns over several times. Conversely, a very poor person living in subsidized housing and getting food stamps does not buy an expensive house, a new car, take trips to Europe, etc. He/she needs every cent just to sustain his/her existence.
Dr. Thomas Sowell's "'Trickle Down Theory' and 'Tax Cuts for the Rich'" has just been published by the Hoover Institution. Having read this short paper, the conclusion you must reach is that the term "trickle down theory" is simply a tool of charlatans and political hustlers.
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