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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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@pm

I own stock, and when I do well I spend more on local shops, goods, maybe buying a house

12:05 AM · Dec 28, 2019

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and

She gave you an incorrect interpretation of stock buybacks to begin with. To buy back the stock they have to buy it from someone else. On net stock buybacks transfer money from mature companies with low return prospects to new companies with high return prospects.