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Trickle Down

 

Theory that economic growth can best be achieved by letting businesses flourish, since their prosperity will ultimately trickle down to middle- and lower-income people, who will benefit by increased economic activity. Proponents say that it produces more long-term growth than direct welfare grants to the middle- and lower-income sectors. See also Supply-Side Economics.

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Business Dictionary: Trickle Down
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Theory that economic growth can best be achieved by letting investors and businesses flourish, since their prosperity will ultimately trickle down to middle and lower income people, who will benefit by increased economic activity. See also Supply-Side Economics.

 
 

 

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Financial & Investment Dictionary. Dictionary of Finance and Investment Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.  Read more
Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved.  Read more