Dictionary Home »
The American Heritage Dictionary of Business Terms » trickle down
trickle down
trickle down definition - business
trickle down
In economics, the theory that increased wealth and income for businesses and wealthy individuals will filter, or trickle down, to those on a lower rung of the economic ladder. The theory holds that granting tax breaks to businesses will result in increased profitability, expansion, and the hiring of additional employees such that increased wealth and profits at the top trickle down as increased incomes for individuals.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
Comments
Improve this definition.
Browse dictionary definitions near trickle down
Share on Facebook