Trickle-Down Economics

C1 – Advanced

Tax cuts for the wealthy is implemented in order to ideally boost the economy by creating more jobs. Thus, providing income for everyone else. As the wealth tax continues, more and more economists hypothesized that these wealth from 1% of the population has not been able to reduce poverty.

Let’s watch the video and know more about the trickle-down economics.

Discussion Questions:

1. What is trickle-down economics and does it actually work?
2. Do you have tax cuts for the wealthy and big corporations in your country? What do you think of this?
3. Does increasing workers’ take-home pay translate to increased household demand? Explain.
4. What do you think would improve the circumstances of the less wealthy?