Question

Trickle down theory of economics

Answer 1

The theory is based on the hypothesis enunciated by the Russian-American economist Simon Kuznets, who argues that as economic growth increases, inequality in the distribution of wealth tends to decrease.

It is one of the most used theories by neoliberal economists, is to favor the richest strata of the population, those where the accumulation of capital is greater, and in turn tends to favor the rest of society, through filtration of a trickle that "wet" the rest of the social classes less favored by the capitalist system.