There's talk of the new Abbott government embracing the "trickle down" economic philosophy of tax breaks for the most well off individuals and business/corporations/miners. The idea is that with more money in their pockets, the rich will spend more in the economy and this will trickle down to the less well off in society.
The Tea Party in the U.S have been championing this theory recently and using Ronald Reagan's "Reaganomics" economic model of the 1980's as a guide.
Here is a video showing the reality of how well Reagan's economic plan worked for the majority of American's back then. It's 8 minutes long but worth a look your not in the 1% and if this sort of stuff interests you?
If the video link won't start just flick it forward a few seconds to get it going. Check it out....
The 'trickle-down effect' is a completely discredited economic theory yorkes, and has been now for well over a decade.
It's been studied extensively, really, and it isn't true, it doesn't work, it's a complete and utter con.
Reagan didn't have an economic plan. He just gave tax cuts to the wealthy and got lucky, there is correlation but not causation.
Much like the Howard/Costello period in Australia, they were just around at the right time, and got lucky on the back of all the hard work done before them.
Giving money and entitlements to the already wealthy only makes the wealthy wealthier. No surprise there, just a direct correlation and causation.
The Tea Party are deadset nutters.