Trickle-down economics - Wikipedia

It is a pretty simple concept that says money left in the markets and businesses and in consumers pockets will be spent buying goods and services thus requiring more goods and services to be manufactured or created. Government spending can be a component of that in areas such as defense or other capital projects.

We have been putting more money into the government entitlement spend category which does little to stimulate and is the least efficient user of capital. Wikipedia, not a good source.

Trickle down economics is an interesting metaphor SGT (Join to see) for supply-side economics which at one time was knows as Reaganomics. I tend to think of supply-side economics more like a fire-hose flow than a trickle flow.
40th U.S. President Ronald Reagan popularized the at the-time "controversial idea that greater tax cuts for investors and entrepreneurs provide incentives to save and invest, and produce economic benefits that trickle down into the overall economy.
Like most economic theories, supply-side economics tries to explain both macroeconomic phenomena and - based on these explanations - offer policy prescriptions for stable economic growth. In general, supply-side theory has three pillars: tax policy, regulatory policy and monetary policy.
However, the single idea behind all three pillars is that production (i.e. the "supply" of goods and services) is most important in determining economic growth. The supply-side theory is typically held in stark contrast to Keynesian theory which, among other facets, includes the idea that demand can falter, so if lagging consumer demand drags the economy into recession, the government should intervene with fiscal and monetary stimuli.
This is the single big distinction: a pure Keynesian believes that consumers and their demand for goods and services are key economic drivers, while a supply-sider believes that producers and their willingness to create goods and services set the pace of economic growth."
I personally am much more in favor of supply side economics than John Maynard Keynes economic philosophy.
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LTC Stephen C. Capt Seid Waddell CW5 (Join to see) SFC William Farrell SSgt (Join to see) SGT (Join to see) SGT Forrest Stewart SPC (Join to see) SrA Christopher Wright Maj William W. 'Bill' Price Capt Tom Brown SMSgt Minister Gerald A. Thomas SSG James J. Palmer IV aka "JP4"SSgt Robert Marx SGT Robert GeorgeRead more: Understanding Supply-Side Economics | Investopedia http://www.investopedia.com/articles/05/011805.asp#ixzz4SvzULStt

A romantic notion at best a vicious fairy tail at worst. Works on some wishful thinking that the rich will spend more and more will make it to the rest of us. The Rich are good at saving money even over generations and it doesn't filter down to the rest of us. Middle Class and Poor Spend More because they have too.