How was" trickle down ecomonic" suppose to work?

The theory goes that when you let more rich people keep their money, they create jobs by hiring more workers and starting new businesses. So the money is supposed to "trickle down" from the rich people to the people they hire, and from there to stimulate the economy.

The reality is that they already have all the workers in their existing businesses they need, and they are already able to start new businesses when they get the inspiration.

They end up putting the money into risky or offshore investments. Meanwhile, money that poor people were permitted to keep would have been spent immediately, and poor and middle class people would have hired other working people to do yard work and other chores for them. ∠°)

Well, let's see economic growth comes from the private business sector. About 70% of those employed today are employed by private small businesses. If the business environment is conducive to growth then that business stays in business and may even add more employees and/or give bonuses to their employees. Those employees spend their earnings in goods and services. That's trickle down economics.

But when small business companies get penalized by increased regulation and taxes, they have to cut back (lay off), or even close down. Then the govt has to take care of laid off workers sending them unemployment checks until they can find another job. With that money they spend it on goods and services. That's the opposite of trickle down. Which do you think is best for this country?

Yes, first responder is correct. Businesses will spend more and invest more if they have more. This results in more jobs. It does work but some are not satisfied with the amount or speed. Raising taxes has the opposite effect. Raising taxes for business is not good. Remember this important truth: corporations and businesses do NOT pay taxes, the consumer does. Business collects taxes for the government but we pay it. We pay sales tax on top of that. Taxes are a cost of doing business and this tax is included in the price you pay for anything.

They will respond by raising prices and or cutting wages and or reducing payroll and or moving to a country with more favorable conditions. Businesses exist to make money, simple fact of life.

Remember the basics of money and banking. We make money when we spend money and the economy grows. Repress the flow of money (higher taxes) and the economy shrinks.

steal from the poor and give to the rich.For example give druggie limbauh a big tax break and he will hire a couple of people to work for his big fat a.. and it will trickle down to us The best thing for the country would be to roll back taxes to were they were before regan

Cutting taxes = more investment capital for businesses, more businesses = more jobs.

Of course the problem with Reagan was that he cut taxes without cutting spending. Also giving tax breaks to companies who outsource jobs is just ridiculously stupid.

Trickle down economy works because it gives you something to work for.

It will provide you a job. In the mean time it you have saved your "own" money and have inspiration, couple that with knowledge and hard work and you will be a success.

You are your own responsibility.

It doesn't work . The trickle down money just evaporates into Wealthy Peoples (like Republican Mitt Romney ) Off Shore and Swiss bank accounts .

The exact opposite of the trickle up poverty Obama wants.

make bushes buddies mega rich and then we all catch the crumbs and stay poor