Tax cuts for the wealthy only benefit the rich (2023)
A study by researchers at LSE and King’s College London analyzed five decades of economic data across 18 nations to evaluate the impact of tax cuts for the wealthy. The findings suggest that such policies primarily benefit the rich without significantly improving unemployment rates or economic growth.
Why it matters
The research challenges the long-standing 'trickle-down' economic theory, which remains a central point of contention in global political discourse.
X Bluesky LinkedIn email History suggests that policies relying on “trickle-down economics” are destined to fail, and yet the idea, for some, still persists. David Hope explains why tax cuts for top earners only benefit the rich and why the issue is so controversial to discuss. When then UK Prime Minister Liz Truss and Treasurer Kwasi Kwarteng sparked economic turmoil by announcing unfunded tax cuts for top earners to boost economic growth, it created one of the most extraordinary political crises in UK history.
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