Trickle-down economics won’t work for Trump any better than they worked for Reagan or Bush II.
Folks who claim tax cuts for the rich trickled down to broad benefit under Reagan forget another confounding factor that may have had much more to do with economic growth in the 1980s: Reagan’s massive deficit spending on the military… also known as economic stimulus:
…Jared Bernstein, former chief economist for Vice President Biden and a senior fellow at the Center on Budget and Policy Priorities… says, it’s not clear that tax cuts are what juiced the economy in the 1980s, noting Reagan spearheaded massive increases in defense spending — from $325 billion in 1980 to as much $456 billion in 1987 — that rippled across the economy [Paul Davidson, “Can Trump Make ‘Trickle-Down’ Economics Work?” USA Today, 2016.11.13].
Trump used to want to cut the military budget. Now the exigencies of “populist” appeal (can we stop euphemizing? can we just say “fascist”?) demand pouring another $100 billion to $300 billion into guns and bombs and reckless adventurism that someone else will pay for.
Trump’s military plan is already stimulating the stock market:
…defense stocks spiked considerably the day after Trump’s election — with the stock value of some of the biggest defense contractors like Northrop Grumman, Raytheon and Lockheed jumping between more than 5 to 7.5 percent at the news [Karoun Demirjian, “Republicans May Get the Defense Spending They Dreamed of Under President Trump,” Washington Post, 2016.11.14].
And O! the masses cheer, since those populism-painted Trump voters all have Raytheon and Lockheed in their diversified stock portfolios….