America has tried trickle-down economics for thirty years. The result has been higher income and wealth inequality. Analyses now show that increasing the income of the top 20% by 1% decreases GDP by 0.08%. Increasing the income of the bottom 20% increases GDP by 0.38%. The poor, by necessity, buy necessities and therefore improve their lives and reduce their reliance on social services. The rich only moderating increase spending, relatively, and the excess accumulates, effectively drawing money out of circulation but putting it in place to a greater income stream.

(Click on the graph for the link.)

“How Boosting The Income Of The Poor Spurs Growth” – World Economic Forum

One thought on “Data On Reverse Trickle-Down

  1. Pingback: Data That Matters July 2015 | Pretending Not To Panic

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