Trickle-down economics, and why we shouldn’t try it again

Conell H., Contributor

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Trickle-down economics, and why we shouldn’t try it again

Trickle-down economics, also called Reaganomics, is most commonly known as the economic policy of President Ronald Reagan. His plan as President of the United States, was the severely cut tax rates, especially for the wealthy. While this was happening, he started decreasing homeland government spending, increasing military spending, and controlling the money supply. This was all in effort to “stimulate economic growth.” What was the result of this policy? The Federal Debt almost tripled, unemployment rose, and federal revenue decreased.

The main theory behind this policy is that large corporations and wealthy individuals will have more money to spend. This will increase demand, which grows the economy, which in turn, somehow trickles down to the lower class. This however, did not entirely work out as planned. While the wealthy did see large cuts in taxes, and more spending money, the economic growth was not enough to control the debt; and it skyrocketed.

And now, an explanation as to how this ties in to modern economic policy. Our GOP lawmakers, both in Congress and the White House, want to try that again. Their plan, from what we know of so far, is to cut taxes across the board, decrease domestic revenue, and hope to stimulate enough economic growth to cover for the trillion-dollar spending deficit that this creates over the next ten years.

While one can hope that all works out this time, history has proven this policy to not work. Why, then, are we reverting to old ways that ruin our federal debt? That, readers, is a question only GOP lawmakers can answer.

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Trickle-down economics, and why we shouldn’t try it again