Trickle-Down Economics

The economic model that allows the people and market to be freer and less dependent on the Government is also known as Trickle-Down Economics.

This model is based in Economics theories created by Economists such as Nobel Prize Winners: Milton Friedman and F.A Hayek. They understood that a Small Government is better for everybody, by lowering taxes and not over regulating the market, this kind of Economics stimulate creativity, entrepreneurship, and Economic Growth.

Individuals know how to spend their money better than the Government does, therefore, when there are fewer taxes and regulations, people will be more enthusiastic to produce, create businesses and when they do so, they create jobs and opportunities for everyone. For example, one owns a jet, and by doing so, one employees a pilot, jets technicians, flight attendants and so on. This is a classic example of Trickle-Down Economics, the jet owner is the one who will provide for other peoples income, and then, these employees can figure out more ways on how to provide more for themselves, and by doing so, the economic activity flows faster than if it was ran by some bureaucrat from The Government.

When The Government taxes entrepreneurs too much, they stop hiring new employees, and the products prices go up. The sum of all of this is high unemployment rate, more debt, and more power from the Government to the people.

Letting individuals free is the best way to build a strong economy. Most of the nations that have a Small Government and low taxes grow on average more than the ones that have a Big Government.