trickle-down theory


Definition of trickle-down theory

: a theory that financial benefits given to big business will in turn pass down to smaller businesses and consumers

Examples of trickle-down theory in a Sentence

Recent Examples on the Web Rumsfeld in turn introduced Mosler to Arthur Laffer, the conservative economist who devised the specious trickle-down theory of economics that has justified every major regressive corporate tax cut for the last 40 years. Robin Kaiser-schatzlein, The New Republic, "The Government Can Afford Anything It Wants," 19 June 2020 So goes the trickle-down theory, attributed to Reagan but just as often espoused by local Democrats. Boots Riley, HWD, "Sorry to Bother You Director Boots Riley Takes a Ride Through Oakland’s Changing Landscape," 2 July 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'trickle-down theory.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of trickle-down theory

1936, in the meaning defined above

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The first known use of trickle-down theory was in 1936

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Cite this Entry

“Trickle-down theory.” Dictionary, Merriam-Webster, Accessed 20 Jan. 2021.

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