Trickle down economics, the concept popularized during the Reagan administration, which stated that it is good for the wealthy to prosper since they will invest and consume thereby creating jobs and opportunity for others has been discredited. It has been by virtue of the fact that since Reagan’s time progressive programs have been stripped away, while the wealthy have prospered but the economy is in hibernation and living standards for the working class have eroded. Trickle down is associated with the “a rising tide lifts all boats” concept.

Still there is quite possibly a simple reason trickle down failed, and that the concept itself is not so purely flawed. Trickle down policies, like a favorable tax structure for the upper classes and a monetary policy that encouraged wealth creation through investment, were coupled with policies that gutted the strength of labor unions and international trade policies that encouraged off shoring of operations and created a labor glut. This left little behind in the way of economic mechanisms to force the distribution of this wealth through society. The results have been disastrous, resulting in our current situation of low wages and underemployment.

The policies pursued also work to show the true face of trickle down, coupled with anti labor policies it becomes clear that this policy was not about good economics it was merely about making some people very very wealthy.

Still had policies which permitted wealth creation been coupled with pro union and sensible trade policies then the mechanisms would have been in place to insure that the wealth created was in fact divided up in a more equitable way, amongst ALL the citizens who helped create it.