Reach the world and benefit the world at the same time -- based on the business people's trickle-down theory

This paper uses economic models and trickle-down theory to show that successful business people benefit others when they make and spend money. It is manifested in four aspects: 1. Businessmen promote material production and the economic cycle. On the one hand, business people provide jobs for workers to obtain labor remuneration; on the other hand, they can produce goods and services that consumers need so that employees can use their wages to buy necessities to meet their needs in life. 2. Tax paid by business people is redistributed to low-income groups through transfer payments and investment in infrastructure construction, which is conducive to improving social welfare and economic growth. 3. Businessmen generate positive externalities by investing in technological innovation to stimulate progress in various fields. 4. Some wealthy people also realize personal value by giving to help others financially. In other words, successful businesspeople benefit others when they make and spend money. It is important to acknowledge that while successful business people help others, there are potential downsides, such as market forces, tax evasion, and consumption of bad goods. Therefore, it is necessary to establish a well-regulated and fair tax system that applies the "nudge" theory to encourage socially responsible behavior by successful businessmen to maximize their contribution to society while reducing potential harm.

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Publication Details

Journal
Advances in Economics and Management Research
Published
2024-10-26
DOI
https://doi.org/10.56028/aemr.12.1.388.2024
Primary Topic
Economic theories and models
Type
article
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article

Reach the world and benefit the world at the same time -- based on the business people's trickle-down theory

Kunlin Li
Advances in Economics and Management Research
Economic theories and models
article

Reach the world and benefit the world at the same time -- based on the business people's trickle-down theory

Kunlin Li
article en

Abstract

This paper uses economic models and trickle-down theory to show that successful business people benefit others when they make and spend money. It is manifested in four aspects: 1. Businessmen promote material production and the economic cycle. On the one hand, business people provide jobs for workers to obtain labor remuneration; on the other hand, they can produce goods and services that consumers need so that employees can use their wages to buy necessities to meet their needs in life. 2. Tax paid by business people is redistributed to low-income groups through transfer payments and investment in infrastructure construction, which is conducive to improving social welfare and economic growth. 3. Businessmen generate positive externalities by investing in technological innovation to stimulate progress in various fields. 4. Some wealthy people also realize personal value by giving to help others financially. In other words, successful businesspeople benefit others when they make and spend money. It is important to acknowledge that while successful business people help others, there are potential downsides, such as market forces, tax evasion, and consumption of bad goods. Therefore, it is necessary to establish a well-regulated and fair tax system that applies the "nudge" theory to encourage socially responsible behavior by successful businessmen to maximize their contribution to society while reducing potential harm.

Advances in Economics and Management ResearchVol. 12(1)
University of Nottingham Ningbo China (CN)
Decent work and economic growth
Openalex Percentile: Top 70%
Economic theories and models
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Reach the world and benefit the world at the same time -- based on the business people's trickle-down theory — Kunlin Li · Advances in Economics and Management Research (2024) | TGRS Research Map | TGRS