In this post, economics professor William Anderson considers the canard that those who advocate economic liberalism want to let wealth “trickle down” from producers to workers and argues that the truth is that it’s the statists (such as Paul Krugman) who hold to the “trickle-down” theory. They want the government to confiscate increasing amounts of wealth from those who have it on the notion that the politicians will then shower the poorer people with that wealth. In truth, very little of what Washington confiscates ever reaches the pockets of the poor.
Under economic liberalism, wealth doesn’t trickle anywhere. It is earned. Some earn much; others earn little. The crucial point is that people know that their well-being depends on their own efforts rather than government.
