“My dear fellow Americans, runoff – the economic theory of runoff – never worked. It’s time to grow the economy from the bottom and middle : It is with these words, given during a speech at the United States Congress on 28 April Joe Biden Concludes his first hundred days as President of the United States. One Hundred Surprising Days is marked by a $ 1.9 trillion stimulus plan for the liberal consensus that has been characteristic of American policy for many decades.
Biden is running point home today, defaming the trick-down theory. But what is all this?
Principle of Drainage Principle (trickle down effect, In English) is relatively simple: The better – the promotion of employers, in particular – will indirectly affect the poorest. In fact, the extra money is considered to boost the economy: it will be reinvested in the economy, which will boost employment and increase wages. The general result: instead of directly helping the most modest (who will use this money for their simple consumption, not to promote a productive system over which they have no control), in this perspective, the state Tax deductions for businesses should be focused on. The (partial) redistribution of wealth occurs on its own, without interference.
If the term appears in the United States in 1944, the idea is outdated. Thus, the Democratic presidential candidate in 1896 William Jennings Bryan Criticism “Those who believe that if we make laws only to enrich the richest, then their prosperity will fall on those below”.. However, it is not automatic. The troll-down theory really took hold in the 1980s, during the neoliberal turn of the world economy Margaret Thatcher In and by the United Kingdom Ronald Reagan In the United States. Rhetoric of “In the first line” D ‘Emmanuel Macron Echoes this theory.
Bee hunting (1714) belongs to Bernard Mandeville As economist Jean-Luc Gafford points out, “The most famous argument in favor of runoff: it intends to convince us that the consumption of the rich, even ostentatiously, ensures poor jobs and income”. As Mandevil writes: “Luxurious luxury captured[e] Millions of poor people. ” But, where Mandeville maintained the idea that inequalities are «Vice President», we owe Principle of justice From John roles (19 ors1) to support the idea that some economic inequalities are justified only and only on the condition that they are “For the benefit of the most deprived”.
The runoff theory, however, has been the subject of strong criticism. Starting with the idea that this would be a really simple principle! Economist Jean-Marc Vettori says that no economist has actually said the concept strictly. Its mechanism itself is called into question by empirical observations: in fact, a large part of the monetary surplus is not reinvested to promote economic activity, but is deposited, saved (especially in tax havens.) .
But critics also focused on the type of relationship between the rulers and said the trickle-down theory inspired. The economist John kenneth galbraith Speaks, eg, A’s “Horse and Sparrow Theory” : The state should feed capitalist racism; Small sparrows share grains that they can shine here and there. Sociologist Richard Sennett, Finally, condemns the phantom nature of runoff: “ This is an accurate reproduction of the absurd dream of heaven in the Bible. Die to the good people of the third world and elsewhere! You are promised a better life in heaven. The trouble is that no one tells you when this famous paradise will come true. about trickle down effect, The answer is obvious: never. “ Thus the idea of runoff can thus become an ideological tool for the major, at least for the purpose of acknowledging increasing inequalities. This is why Joe Biden is so strict on it.