Trickle-down economics

High school (ages 12+)
People & Society

Name:

Date:

Step 1 · Read the article

Open the article and read it at the level above. Then answer the questions below in your own words.

https://smallwhale.org/articles/trickle-down-economics

Write what each word means, using the article.

Do not copy the article. Write two things you learned, the way you would explain them to a friend.

Answers below are taken from the article’s stored facts, so they match what the student read.

1. What is the economic school of thought?Primarily associated with supply-side economics, emphasizing benefits from the top down
2. What is the analogous theory?Referred to critically as the 'horse-and-sparrow theory'
3. How does trickle-down economics say money will reach everyone?The idea is that lower taxes for the wealthy and businesses will let them invest more in new ideas, build more factories, and create more jobs, so the extra money will eventually reach everyone.
4. Why do some people think trickle-down economics is a bad idea?Some people worry that the rich might save or spend the money on luxury items instead of hiring workers, so the money may stay at the top and not help most people.

Supply-side economics: Economic theory advocating for tax cuts and deregulation to boost production and investment.
Income inequality: The disparity in income distribution among a population, often measured by Gini coefficients.
Marginal tax rate: The tax rate applied to an additional dollar of income earned.
Deregulation: The reduction or elimination of government regulations on businesses.