Almost seems as mysterious as the missing water from the Murray-Darling basin.
Trickle-down economics is the economic theory that lowering taxes on the wealthy and on businesses will stimulate business investment to the long-term benefit of society. The idea is that by sprinkling a huge amount of money into the bank accounts and stock portfolios of the wealthy, a portion of that money will “trickle down” to everyone else. Despite ample evidence that it hasn’t worked, trickle-down has been an economic driver for discussions about taxes in the US since at least the Reagan administration. The newest research that argues that tax cuts for the rich don’t work for anyone other than the rich comes in the form of working paper by David Hope of the London School of Economics and Julian Limberg of King’s College London called The Economic Consequences of Major Tax Cuts for the Rich.