trickle down economics

trickle down economics definition - finance
A theory that economic growth is promoted by letting businesses flourish and passing tax laws that reduce the taxes of the wealthy. The theory says that businesses and individuals will make investments that fuel economic growth and the benefits will “trickle down” to the masses. Critics deride this idea as a bad justification for helping wealthy people and businesses at the expense of middle- and low-income people.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.