| an economic theory that monetary benefits directed esp. by the government to big business will in turn pass down to and profit smaller businesses and the general public. |
Trickle Down Theory
An economic theory which states that investing money in companies and giving them tax breaks is the best way to stimulate the economy.
Investopedia Commentary
Proponents of this theory believe that when government helps companies, they will produce more and thereby hire more people and raise salaries. The people, in turn, will have more money to spend in the economy.
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See also: Keynesian Economics, Reaganomics, Supply-Side Theory