Corporate profits in the United States have reached an all-time high. Despite this, the unemployment rate remains stubbornly high; companies aren’t hiring, and wads of hoarded corporate cash so far have not translated into jobs (but executive bonuses are back to pre-recession levels). Can we now finally dispense with the trickle-down theory? Of course not. [...]

Remember supply-side economics and trickle-down theory? Supply side economics theorized that removing barriers to production with income tax and capital gains tax cuts, along with deregulation, would stimulate production and produce enough consumer spending on cheaper products to more than offset the revenue losses from the tax cuts. Trickle-down theory postulated that tax cuts for [...]