eli5: Trickle up economy

Question

eli5: Trickle up economy

In: Economics

Answer 1

It’s simple. So “Trickle down”–the common conservative tactic since Reagan, want to end up giving money to the working class. To do that, they say give the money to the wealthy. They will in turn spend money to generate economic activity. Slowly, pennies out of every dollar will go to the working class. It has never once worked out like that in human history.

“Trickle up” says if you want to get money to the working class, just, you know…*give it to them directly*. This increased spending power across hundreds of millions of citizens should increase economic activity across the board, and generate a strong economy.