Question

The trickle-down effect has proved to be successful in reducing poverty in india. Give reason

Answer 1

For the proponents of trickle-down economics, the belief was that rising incomes at the top end of the spectrum would lead to more jobs, less poverty and higher incomes at the lower end. According to this thesis, as long as an economy is growing, the benefits will eventually make their way through the system.  Variations of this thinking have been taught to business and economics students for decades, leading to what many would describe as an unhealthy obsession with GDP as the most reliable measure of economic success. However, like a driver who focuses solely on their speed, an economist evaluating nothing but GDP is bound to miss important warning signs along the road.