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Was thinking

Question.

Can anyone name and site a time period in American economic history where 'Trickle Down Economics' has actually worked? And what I mean by worked is that everyone benefited (not just the guys at the top).

Comments

( 3 comments — Leave a comment )
muckefuck
Mar. 22nd, 2011 02:41 am (UTC)
In fact, I read a good paper by an economist recently demonstrating that they have never worked as promised. I'll see if I can find the link.
leiny
Mar. 22nd, 2011 02:47 am (UTC)
If you can find it I'd love to read.
ivanushka
Mar. 22nd, 2011 01:53 pm (UTC)
I guess it depends on your definition of "trickle down" and "worked". It's also tough, because it's almost always used in the context of Federal income tax rates, which only takes you back about 100 years or so (the Civil War, notwithstanding).

Lowering tax rates usually brings about some sort of "economic expansion", which tends to benefits "most" people, again, depending on your definitions of "benefit" and "most". If you just take it broadly as "increased employment", then I'm guessing the middle 1920s are probably a good example.

Even in the 1920s though, Federal Income tax didn't really come into play for most people. The lowest "bracket" of $0-$4000 was 4% in 1920, when the median income was under $2000/year.

I'm certainly not defending "trickle down" as an economic theory ... but maybe only because it's less an economic theory, than a political platform.
( 3 comments — Leave a comment )