trickle-down theory

noun

1. an economic theory that monetary benefits directed especially by the government to big business will in turn pass down to and profit smaller businesses and the general public.

Word History and Origins

Origin of trickle-down theory¹

First recorded in 1950–55

Example Sentences

Reagan's budget director, David Stockman, actually spilled the beans to journalist William Greider, telling him, "It's kind of hard to sell 'trickle down, so the supply-side formula was the only way to get a tax policy that was really 'trickle down.' Supply-side is 'trickle-down' theory."

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The Ayn Rand winner-take-all ethos and the thoroughly disproved trickle-down theory, which holds that helping those who need no help will somehow lift everyone up, continue to be trotted out in debased, zombified form.

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The trickle-down theory, made famous by former President Reagan, focused on cutting taxes and easing regulations.

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But that trickle-down theory led to a weaker economic growth, lower wages, bigger deficits, and a widening gap between those at the top and everyone else in nearly a century.

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Many of the people who are begging Congress to appropriate money to hunt UFOs apparently subscribe to a trickle-down theory, where they believe that some of that money will end up in their pockets.

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