The Trickle-Down Economics Theory Doesn’t Work. Here’s Why

When politicians give corporations massive tax breaks, who comes out on top?

Corporations do, obviously, as they benefit immensely from paying less taxes and saving more cash. Politicians also benefit from their own lax tax policies because the corporations they helped sometimes make generous donations to reelection campaigns.

These tax breaks, however, are supposed to propel the lower and middle class to higher financial standings.  By giving more money to corporations and the people at the top, those decision makers will hopefully pass their extra cash to employees on the lower end of the company structure. When this happens, everyone gets more money, everyone is happy, and the economy is in good standing. This is called “trickle-down economics,” and it’s been a favorite policy of (mostly right-leaning) politicians for the last few decades.

Unfortunately, this never happens…and it does not work. To explain why, CEO and financial writer Evan Kirkpatrick spoke with UPROXX about how trickle-down economics is a terrible idea…and how it could hurt you.

Unfortunately, the next administration is in favor of the trickle-down economic theory. The incoming president and his staff already highlighted their own tax breaks for corporations, who theoretically could enrich the lower and middle class…but probably won’t.