Trickle-up economics (also known as bubble-up economics) is an economic policy proposition that final demand among a broad population can stimulate national income in an economy. The trickle-up effect posits that policies that directly benefit lower income individuals will boost the income of society as a whole, and thus those benefits will "trickle up" throughout the population. [1] It is the opposite of trickle-down economics .
Paul Krugman referred to the principle behind the Obama administration's economic policies as trickle-up economics, [2] while John R. Talbott used the term bottom-up economics. [3] Biden's American Rescue Plan was also referred to as trickle up. [4] Accompanying labeling differed from most trickle down labels in that both Obama's and Biden's approaches were characterized as spending heavy programs, rather than tax cuts in any particular tax bracket. [5] [6] At the same time, some criticisms of Obama's economic policy were labeled trickle up. [7]
It would be an exaggeration to say that the Obama administration has done the reverse, but there definitely was an element of trickle-up economics in its response to the Great Recession: Much of the stimulus involved expanding the social safety net, not just to protect the vulnerable, but to increase purchasing power and sustain demand. And in general Obama-era policies have tried to help families directly, rather than by showering benefits on the rich and hoping that the benefits trickle down.
Add it up: Obama's economy has handsomely extended the long winning streak of the rich.