When the trickle-down fails, the Middle Class Fails
From Reagan’s supply-side economic policy to Trump’s tax cut for the ultra-wealthy, Republicans continue an assault on Middle America.
“Trickle-down economics,” a term often used to describe economic policies that favor the wealthy or big businesses in the belief that their wealth will “trickle down” to benefit everyone in society, has been a contentious topic.
Critics argue that such policies have not delivered the promised benefits to the middle class and have, in some cases, exacerbated economic inequality.
Here’s how these policies have been criticized for affecting the middle class:
Widening Income Inequality
Policies that reduce tax rates on the wealthy and on corporations are said to concentrate wealth at the top.
Over time, this concentration of wealth has contributed to a widening gap between the richest individuals and the middle and lower economic classes.
Limited Wage Growth
Despite productivity increases, wage growth for middle-class workers has been relatively stagnant in comparison.
