Why was supply side economics referred to as trickle down economics?

Answer 1

Supply-side economics is often referred to as "trickle-down economics" because it posits that benefits provided to the wealthy and businesses, such as tax cuts and deregulation, will eventually "trickle down" to the broader population in the form of job creation, increased investment, and economic growth. The idea is that when the upper income brackets have more capital, they will spend and invest more, thereby stimulating the economy and benefiting everyone. Critics argue that this approach disproportionately favors the rich and does not effectively lead to widespread economic benefits for the lower and middle classes.