“Jobs and Growth” A slogan introduced by the Liberal party, who currently have a majority seat in the Australian Parliament. Whilst this is an uplifting idea the approach behind it is flawed. Liberal Australia would have you believe that tax cuts favouring the wealthy will trickle down the economy and benefit everyone. Through more jobs being created and a higher average wage, unfortunately this just isn’t the case.

Trickle Down Economics was introduced as Supply Side Economics and later renamed Reaganomics in the Ronald Reagan era of American government (1981-1989). The wealth gap at the time was relatively high but acceptable sitting at the top 10% of the country owning approximately 30-35% of the wealth. With the new government came a …show more content…
Interests rates have skyrockets and the American dollar has gone up. Causing the Import market to grow and Export to fall. By the end of 1983 the government stabilises and the economy seems to grow. Military spending booms and by the end of the Reagan government the national debt triples from one to three trillion. At this point the benefits of Trickle Down Economics is wildly debatable, Reagan supporters argue that it took them out of the recession. Whilst this may even have some truth to it, it was without a doubt one of the causes in the first place. Furthermore, by the end of the Reagan presidency the government had a huge amount of debt to explain. George W. Bush followed the Ronald Reagan government with similar plans. A firm belief that further tax cuts again would create a boom in the economy. Following these tax cuts Bush also heavily cut spending in most areas besides military, the heavy spending again amassed huge national debts. Almost immediately there is another recession. From 2003-2009 the total tax for the top earners is only 35%, Capital gains tax is only 15% both of these are roughly half of what it was in 1980 ("Reaganomics [ushistory.org]", 2016). By October of 2008 an investment/credit return bubble burst and the greatest economic crisis since the Great Depression began. By 2013 the top 10% now hold over 70% of the wealth, with major changes being difficult to fix under the Obama government this can be majorly blamed on the publics misunderstanding of tax cuts and their effects. ("Economic Theory and President George W. Bush", 2016). Donald J. Trump, a candidate in the current election for president has very similar plans if voted into office, whilst he does plan on changing to low income tax percentage to 0%. Changes to the investor class will have little to no change in the hope that they ‘stay competitive’. This will without a doubt benefit the lower