During the 1980s, US President Ronald Reagan was subjected to certain extreme liberal and supply-side economic policies. During this period, taxes were reduced and production was supported, and economic growth and development were thought to accelerate.
According to planned economic policy during this period, when taxes are reduced, the rich invest more and the banks lend more. Through this, more jobs will be held and economic growth will increase.
It was believed that in countries where such policies were implemented, wealth would spread from top to bottom. This policy was implemented in the Ronald Reagan era in a narrow sense and was known as a "trickle down economics".
Trickling the economy is a theory that deals with the benefits of wealth and how they have reduced in individuals. These benefits, therefore, include cutting down taxes higher income generation and other gains and dividends.
The theory assumes that the investors and other savers are the significant drivers of the growth of the economy. This states that they are likely to use .more stocks, and lending in the banking will increase. Owners will invest more and hire more workers.
