Trickle-Down vs. Trickle-Up Approach:
Jasmine Shah’s book, The Delhi Model highlights Delhi’s trickle-up economics, contrasting it with India’s traditional trickle-down approach.
Trickle-Down Economics:
- Focuses on wealth accumulation at the top, assuming benefits will gradually reach lower income groups.
- Prioritizes corporate tax cuts, subsidies for big businesses, and deregulation.
- E.g. India’s corporate tax cuts (2019) reduced revenue for social programs.
Trickle-Up Economics:
- Directly invests in lower and middle-income groups to boost demand and economic growth.
- Prioritizes public welfare, education, healthcare, and employment programs.
- E.g. Delhi’s economic model reduced unemployment (1.9%) and public debt-to-GSDP ratio (3.9%).
