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"trickle down theory" seems obviously correct to me. Like, if a person has lots of money, it's stupid to sit on it - they invest it, found businesses, hire people, buy things - all of which are putting money back into lower tiers of the economy to me. Am I missing something big?

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Most of the money saved in big business tax cuts goes towards stock buybacks which raises the price of the stock but does little else for the economy. the money does not “trickle down” to the lower ranks of the company it stays at the top.

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But isn't raising stock price good for the economy?

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Aella

@Aella_Girl

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@iAmAdamReid

I own stock. If I get richer from stock going up, I invest more and have more to spend on e.g. a house, which requires paying people to build it. Taxes on income do seem to reduce the usefulness of trickle down tho

12:05 AM · Dec 28, 2019

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and

Vast majority of people don’t and can’t own stock. So the economy looks great if you’re one of the few that has capital.

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and

Taxes are useful for collecting money for the society as a whole. Otherwise no one would pay to build the first electrical grid, telephone system, national highways, public education, national defense, national parks, etc. I do wish the funds were used more efficiently, through.

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and

Unless the house is a new build, the house will probably be an existing home (like most real estate home sales). The contribution to the economy will probably come from new furnishings and appliances, and the spending will come in the future, not today.