"... growth is generated by those in the broad middle of the income distribution, from the 10th to the 90th deciles.
They do the bulk of the working, saving, consuming and innovating in the economy, and if their finances are healthy, the economy will grow and be healthy too. Put another way, a robust economy of thriving middle-income families is not a consequence of economic growth, it is its *cause*."
#EricBeinhocker, #NickHanauer, 2022
"Jared Bernstein ... summarised the evidence against trickle-down economics in a presentation to the joint economic committee of Congress several years ago.
... if the trickle-down theory was correct, we would expect to see that, when tax rates go down, growth goes up and vice versa. But using data stretching from 1947 to 2015, Bernstein showed in no case was that true."
#EricBeinhocker, #NickHanauer, 2022
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Listening to this 2022 back episode of Pitchfork Economics reminded me that for about 5 minutes in the UK, Liz Truss was a thing;
"Truss is a deep believer in trickle-down economics – the theory that if you cut taxes for corporations and rich people, it will spur economic growth, which will eventually trickle down into higher wages and rising living standards for the rest.
#EricBeinhocker, #NickHanauer, 2022
(1/?)
Strypey