Monthly Archives: June 2015

Message to Congress on Trade and Inequality: Wake Up, ‘Trickle-Down’ is Dead!

Published on Oxfam America’s Politics of Poverty blog. This blog post was co-authored by Stephanie Burgos, Oxfam America’s Economic Justice Policy Manager.

Fast-tracking TPP is unlikely to benefit economic growth and may further exacerbate inequality

The debate over trade is red-hot these days. Proponents in Congress are revving up this week to push through their ‘Plan B’ after a grassroots uprising took them by surprise earlier this month and defeated ‘Plan A’, which the Obama administration had hoped would grant it ‘fast track’ trade negotiating authority designed to facilitate completion and quick passage of the Trans-Pacific Partnership (TPP) free trade agreement. Continue reading →

Is the IMF Dismantling Trickle Down Economics?

Published on Duncan Green’s From Poverty to Power blog

In a new report, the IMF effectively drives the final nail into the coffin of trickle-down economics. The top finding, in their words, is that “if the income share of the top 20 percent (the rich) increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down.”

In contrast, an income bump to the poorest 20 percent is associated with higher GDP growth. The report concludes, “The poor and the middle class matter the most for growth.” Continue reading →