Trickle Down Economics Essay

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Trickle-down Economics
Trickle-down economics is also known as supply-side economics is a theory stating that if the government decreases financial aid and tax cuts, the resulting money will be distributed back to the highest taxed individuals. The government makes the assumption that those citizens will use the money wisely. The wealthy who are given the money are expected to expand business producing jobs for the poor and middle class. As well, they are expected to use the money to increase their workers’ wages. Although a seemingly sensible idea, the reality of trickle-down economics is that it does not benefit all people. In a realistic scenario, the upper-class benefit but the poor and the middle class do not. The trickle-down effect …show more content…

In a perfect economy, each group makes up twenty percent of the total. There was a study conducted were about 5,000 Americans were asked how they believe money is distributed in the five groups. Ninety- two percent of the 5,000 Americans believe that money should be distributed equally throughout each group. However, that is only in a perfect economy, where each group makes up twenty percent of the total. Sadly this is not a perfect world and the reality is that the top and the fourth percent are given way more than the middle percent and the second percent are given less than half of what the middle percent receive. The bottom forty percent of Americans have little to no money and the top twenty percentage have all the money. After analyzing all the data collected it was discovered that the middle percent is gradually disappearing and the poor class is gradually increasing. This is the gap that is being stretched between the wealthy and poor class. (Wealthy Inequality in America)
Trickle-down economics does not work and it has many issues starting with the wealthy collecting and investing the money instead of using it to create employment for the lower classes. The gap between the social classes is widening and the money that is given to the wealthy class is not being distributed equally amongst all classes. This is producing a bigger poor class and minimizing the middle

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