The IMF Confirms That ‘Trickle-Down’ Economics Is, Indeed, a Joke

Posted: 04/01/2016 by vequinox in Literature

Ελεύθερη Λαική Αντιστασιακή Συσπείρωση

(Illustration: Dawn Hudson/Shutterstock)

“Trickle-down” economics began as a joke. Seriously.

If there’s one person most often associated with the origins of of trickle-down economics, it’s President Ronald Reagan. Few people know, however, that the phrase was actually coined by American humorist Will Rogers, who mocked President Herbert Hoover’s Depression-era recovery efforts, saying that “money was all appropriated for the top in the hopes it would trickle down to the needy.”

Rogers’ joke became economic dogma within two generations, thanks in large part to Reagan. At the center of Reagan’s economic doctrine was the idea that economic gains primarily benefiting the wealthy—investors, businesses, entrepreneurs, and the like—will “trickle-down” to poorer members of society, creating new opportunities for the economically disadvantaged to attain a better standard of living. Prosperity for the rich leads to prosperity for all, the logic goes, so let’s hurry up with those tax cuts already. The legacy of Reaganomics continues to…

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