INTER WAR YEARS 1919 TO 1939
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Americans needed to engage in risky business practices
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Labor unions should be declared unconstitutional
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If taxes were cut for the wealth, it would benefit the middle and lower classes
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The Federal Government should raise taxes on the wealthy
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Detailed explanation-1: -Trickle-down theory is an economic strategy where taxes levied on the high-income group are curtailed. The theory claims that the increase in wealth will trickle down into lower economic sections in the form of increased investments and employment.
Detailed explanation-2: -Trickle-down economics is the theory that tax breaks and other beneficial policies for companies and the higher earners in society will put more money into the economy, which will eventually benefit everyone.
Detailed explanation-3: -Trickle down economics is a term used to describe the belief that if high-income earners gain an increase in salary, then everyone in the economy will benefit as their increased income and wealth filter through to all sections in society.
Detailed explanation-4: -Ronald Reagan’s economic policies, dubbed “Reaganomics” by opponents, included large tax cuts and were characterized as trickle-down economics. In this picture, he is outlining his plan for the Economic Recovery Tax Act of 1981 from the Oval Office in a televised address, July 1981.
Detailed explanation-5: -Trickle-down economics generally does not work because: Cutting taxes for the wealthy often does not translate to increased rates of employment, consumer spending, and government revenues in the long term.