Contrary to the popular belief, Hillarys policies will actually benefit the rich and will have a negative impact on economic activity.Īlso, the government spending is done by making payments to contractors who build roads and bridges. However, later they will collect money from the poor in the form of taxes to give it to the rich in the form of interest. Here the government will first take money from the super-rich. The problem with this belief is that government can no longer raise taxes in America without being too unpopular Hence if money has to be raised for economic spending, it can only be raised via debt. Hence, the government must take this money from the people and then spend all of it back! If the money were in private hands, people would stop spending it, and the economy would go into a downward spiral. It is the governments job to not let this demand fall. The underlying belief is that the total spending in the economy, i.e., the aggregate demand must not fall. The central tenet of Hillarys policies is called government spending. On the other hands, Hillarys policies can be considered to be more closely associated with trickle-down economics. Arent Hillarys Policies the Same as Trickle-Down Economics? Therefore, the description of these policies as trickle-down economics is inaccurate. The money isnt really being trickled down from the higher-ups. The policy is therefore aimed at incentivizing people from all classes to indulge in more economic activity. However, the rich have also been paying more taxes throughout. It is true that the rich may record more gains. The fact of the matter is that Trump has cut taxes across all income levels. If productive people are rewarded instead of being penalized, it changes the incentive to work, save and even spend. The focus is to stop penalizing the people of United States for being productive. Instead, Trumps policies can be seen as adhering to supply-side economics. Can Trumps Policies Be Called Trickle-Down Economics?ĭescribing Trumps policies as trickle-down economics may not be completely accurate. However, it seemed to have worked since economic growth during the Reagan regime was much higher than during the reign of Clinton which followed it. The effectiveness of trickle-down economics has been questioned several times. Since the theory claimed that the economic benefit would move down the social strata, it was called trickle-down economics. Hence, the economic benefit will flow from the richest people to the poor and middle class automatically. An increased demand for goods will create an increased demand for labor and services as well. This is because when rich people pay fewer taxes, they buy more stuff. According to him, a tax cut on the richest people in the country is what promotes economic growth. The term trickle-down economics was first coined by critics to describe Ronald Reagans economic policies. We will also understand how Hillary was also advocating the same trickle-down economic policy. In this article, we will analyze these policies in more detail. She made the audience believe that her policies were different than the trickle-down policies being advocated by Trump. On the other hand, Hillary was advocating an economic policy where the government would increase spending on the poor. She called it trumped up trickle-down economics. For instance, Donald Trump was vehemently advocating tax cuts. The policies suggested by them also seemed to very different. This demographic has always been staunch supporters of the Democratic Party. On the other hand, Hillary Clinton seemed to be more connected to the grass root American who lives in poverty and economic stagnation. Donald Trump was representing the culture of flamboyant billionaire capitalists that Republican parties seem to support. The Presidential debate in the United States was centered on economic policies in 2016.
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