The video above by The Exploding Heads helpfully explains trickle-down economic theory in a concise manner.
Source: The Independent
Liz Truss clashed with Joe Biden over economic policy ahead of a meeting at the United Nations summit in New York, as the US president lashed out at “trickle-down economics”.
The prime minister admitted on Tuesday that her own tax-cutting plans will initially benefit the rich more than the rest of Britain – insisting that economic growth would “benefit everybody” in the long run.
Ms Truss also appeared to suggest her government was willing to lift the cap on bankers’ bonuses in the City of London, despite widespread outrage among MPs, unions and economists at the proposal.
It came as Mr Biden said that he was “sick and tired” of the right-wing economic theory that cutting taxes for businesses and the wealthy will see benefits “trickle down” into the pockets of the least well-off.
But No 10 said it would be “ludicrous” to suggest Mr Biden’s criticism was directed at Ms Truss. Her official spokesman said: “Any suggestion that it’s in some way a direct criticism of UK policy would be ludicrous. No two countries’ economies are structured in the same way – each have unique challenges.”
Ahead of their meeting yesterday, President Biden and UK's Prime Minister offered their divergent takes on trickle-down economics.
