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DictionarySeetrickle-down theorytrickle down
trickle down1. Of a liquid, to flow or seep downward in drops or a thin stream. As the ice cream melted, it began tricking down Billy's arm. After dropping the jug, he just watched helplessly as all the wine trickled down the steps of the porch.2. To distribute, pass, or diffuse to people lower on a hierarchical structure. The famous economical model posits that, should the wealthy be allowed to make as much money as possible, it will trickle down to everyone else in society. You're deluding yourself if you think power within the company is going to trickle down to you just because you're regional manager now.See also: down, trickletrickle down (to someone or something) 1. Lit. [for a liquid] to seep or dribble downward to reach someone or something. The water trickled down the wall to the floor. It trickled down very slowly. 2. Fig. [for something] to be distributed to someone or something in little bits at a time. The results of the improved economy trickled down to people at lower-income levels. Information about what happened finally trickled down to me.See also: down, trickletrickle downv. To diffuse downward through some hierarchical structure: The sociology professor believed that money rarely trickles down from the owners of capital to the workers who toil in the factories.See also: down, trickleTrickle down
Trickle downAn economic theory that the support of businesses that allows them to flourish will eventually benefit middle- and lower-income people, in the form of increased economic activity and reduced unemployment.Trickle Down TheoryAn informal term for a macroeconomic theory that a government can best promote growth by providing incentives for persons to produce goods and services. The primary way a government does this is by maintaining low tax rates so that investors and entrepreneurs may invest their money in production. Maintaining low tax rates on the wealthy is one of the most important and controversial aspects of trickle down theory; the theory states that if well off persons have the capital available to produce goods and services, they create jobs and thereby grow the economy. In other words, the growth "trickles down" from the wealthy to the remainder of the economy. Critics contend that this does not happen in reality and that the wealthy are more likely to keep, rather than invest, their money. In the United States, trickle down theory was crucial to the economic policy of the Ronald Reagan administration. See also: Keynesian economics, Monetarism, Thatcherism. |