Bubble Up & Trickle Down Economics, What are they? Trickle Down Economics is the theory that if you allow more money to flow to the Upper income class, people of this class will invest in business and spend more money, and the resulting overflow will trickle down to the lower income class, benefiting them as well.Bubble Up Economics is the theory that if you allow more money to flow to the Lower income class, people of this class will spend more money that will eventually rise up to the Upper income class, benefiting them as well.The question posed here is which Model is better for the Economy as a whole?But the U.S. is a Capitalist, Free Market system. Isn’t It? Doesn’t the Market decide who gets what, not the Government? The U.S. is far from a purely capitalist, Free Market society. There are numerous laws and tax codes that favor individuals differently, usually benefiting either the Upper or Lower income classes more. The market dictates much but certainly not all of “who gets what”.Our tax laws of course are the easiest example, with different tax rates applied to different income levels. But there are numerous other types of laws that… Read full this story
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