Explain Coolidge’s idea of Trickle Down Economics.

Explanation:

President Coolidge understood, what he termed “economy in government” was essential not just for a sound economy, but was a moral and constitutional responsibility. In the 1920s President Warren Harding and President Coolidge made “economy in government” a centerpiece of their administrations. Economy in government meant a balanced budget, tax rates that were low and reasonable, and paying down the national debt. He believed that both were equally vital to the success of the economy and it was a morally responsible policy. Coolidge would direct his administration to work to achieve the goals of reduced government spending and lower tax rates.

Trickle-down economics, also called trickle-down theory, refers to the economic proposition that taxes on businesses and the wealthy in society should be reduced as a means to stimulate business investment in the short term and benefit society at large in the long term.' Supply-side is 'trickle-down' theory.

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