What's the theory behind trickle-down economics?

Trickle-down economics is an economic theory that suggests that tax breaks and other incentives for businesses and high-income earners will stimulate business investment in the short term and benefit society at large in the long term. The theory is based on the idea that when businesses and high-income earners have more money, they will invest in new businesses, create jobs, and drive economic growth. This, in turn, will benefit lower-income earners and the economy as a whole.<br /><br />The theory is often associated with supply-side economics, which emphasizes the role of tax cuts and deregulation in promoting economic growth. Proponents of trickle-down economics argue that reducing taxes on businesses and high-income earners will encourage them to invest more in their businesses, which will lead to job creation and economic growth. They also argue that tax cuts will increase disposable income for consumers, which will lead to increased spending and further economic growth.<br /><br />Critics of trickle-down economics argue that it is a flawed theory that benefits the wealthy at the expense of the poor and middle class. They argue that tax cuts for the wealthy do not necessarily lead to increased investment and job creation, and that the benefits of such tax cuts are often concentrated among the wealthy rather than trickling down to the rest of the population. They also argue that the theory ignores the role of demand in driving economic growth and that it is based on a flawed assumption that the wealthy will invest their tax savings in ways that benefit the economy as a whole.