Post by the Scribe on Feb 12, 2022 8:39:05 GMT
Republicans have long promised that “trickle-down economics” is the best way to stimulate the economy.
Trickle-down economics is the practice of giving more money to the very wealthy so they can reinvest it, causing a "trickle-down" effect that creates jobs and stimulates growth. According to this theory, any tax increase on the wealthy will hurt the economy and cause another recession.
Again, this theory has been thoroughly disproven. The huge tax cuts for the wealthiest 1% of Americans enacted by George W. Bush did not result in job creation or a robust economy. In fact, our economy took the worst nosedive since the Great Depression.
Conversely, the tax increases on the wealthiest 1% passed by Presidents Clinton and Obama were followed by strong job growth, shrinking budget deficits, and lower unemployment rates. During the eight years after President Clinton raised taxes on the top 1%, the poverty rate went down. After Bush enacted trickle-down economic policies, the poverty rate began rising again.
Trickle-down economics is the practice of giving more money to the very wealthy so they can reinvest it, causing a "trickle-down" effect that creates jobs and stimulates growth. According to this theory, any tax increase on the wealthy will hurt the economy and cause another recession.
Again, this theory has been thoroughly disproven. The huge tax cuts for the wealthiest 1% of Americans enacted by George W. Bush did not result in job creation or a robust economy. In fact, our economy took the worst nosedive since the Great Depression.
Conversely, the tax increases on the wealthiest 1% passed by Presidents Clinton and Obama were followed by strong job growth, shrinking budget deficits, and lower unemployment rates. During the eight years after President Clinton raised taxes on the top 1%, the poverty rate went down. After Bush enacted trickle-down economic policies, the poverty rate began rising again.