IMF Economists: 'Trickle Down Economics Doesn't Work'
June 24, 2015
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8:20Now PlayingIMF Economists: 'Trickle Down Economics Doesn't Work'
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"Researchers found that when the top earners in society make more money, it actually slows down economic growth. On the other hand, when poorer people earn more, society as a whole benefits.
The researchers calculated that when the richest 20% of society increase their income by one percentage point, the annual rate of growth shrinks by nearly 0.1% within five years.
This shows that "the benefits do not trickle down," the researchers wrote in their report, which analyzed over 150 countries."
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