Tag Archives: trickle down economics

I will start by stating loud and clear that my understanding of economics is at a very basic level. However the concept of trickle down economics is refreshingly simple, so even I get the gist. But does it work?

Ed Davey addressed the question in his interview on Sky News yesterday, where he says that the practice of boosting big business with tax cuts will not help the 4 million SMEs:

Liberal Democrat leader, Sir Ed Davey says, 'right wing trickle down economics' does not work as it has 'failed before'. He adds that his Party want a fairer country. #KayBurley: https://t.co/ZTbv6x8JZT

📺 Sky 501, Virgin 602, Freeview 233 and YouTube pic.twitter.com/vFwI4D1LPE

— Sky News (@SkyNews) September 22, 2022

And neither will it help those many millions of people who are struggling now, at this very moment, with the cost of living crisis. Even if Truss’s proposals did manage to kickstart the economy again it would take months, if not years, to impact on ordinary citizens/consumers.

However the evidence appears to be that, even in the long term, trickle down (or supply side) economics doesn’t achieve its intentions.