TED-Ed: Does trickle-down economics actually work? | Jonathan Smith

The video discusses the US economic struggles during the late 1970s and early 1980s, focusing on Reagan's economic policies, particularly tax cuts for the wealthy, known as trickle down economics. It evaluates the effectiveness of these policies in stimulating economic growth and improving living conditions. The video also examines the impact of tax cuts on government revenue and the economy, using Kansas as a case study. A global perspective is provided, highlighting a study that shows tax cuts often benefit the wealthy without significantly boosting the overall economy.

What was the primary goal of Reagan's economic policies introduced in the 1980s?

• To stimulate economic growth through tax cuts

• To reduce inflation through monetary policy

• To increase tariffs on imported goods

• To increase government spending

According to the theory, how are tax cuts supposed to stimulate the economy?

• By increasing government control over businesses

• By reducing government debt

• By encouraging people to work more

• By promoting international trade

What was a significant consequence of the tax cuts in Kansas between 2012 and 2013?

• Higher employment rates

• Economic growth in local businesses

• Increased government revenue

• A negative government balance sheet

What did the London School of Economics study find about the impact of tax cuts?

• They primarily increased the wealth of the top 1%

• They significantly boosted the overall economy

• They had no effect on the wealth distribution

• They led to a decrease in unemployment

What is a challenge in assessing the success of economic policies like trickle-down economics?

• The lack of historical data

• The uniqueness of each economic scenario

• The uniformity of policy impacts

• The simplicity of economic models