IB Economics – Drogaris Gaith Kalai Macroeconomics P.200; 1 3 1. Before the 1970’s, economic development focused merely on terms of capital terms and purely economic growth As of the 70’s however, development came to mean redistribution with growth, as it was selfish for a small percentage of the people to own the majority of the capital in a certain nation. Programs such as welfare, employment checks, ect… became the norm. 2. The trickle-down theory implies that investing money in companies and giving them tax breaks is the best way to stimulate the economy as the money invested will eventually trickle down the social hierarchy and “irrigate” people in starting at the top of the pyramid, making its way down. It was believed in the 50’s and 60’s that trickle-down economics promotes giving tax breaks to the rich in the hopes that it will also ultimately help the working class. In his campaign, Obama has stated that this trickle down model has “failed us” as a nation as a
This is the end of the preview. Sign up
access the rest of the document.
This document was uploaded on 10/26/2011 for the course PLIR 2050 at UVA.