What economic belief suggests that tax breaks for the wealthy lead to job creation for the lower classes?

The belief that tax breaks for the wealthy can ultimately lead to job creation for the lower classes aligns with the principles of trickle-down economics. This economic theory posits that benefits provided to the affluent or businesses will "trickle down" to the broader population, including lower-income individuals. The rationale behind this is that when the wealthy receive tax breaks, they have more capital to invest in their businesses, which may lead to expansion and the creation of new jobs. As companies grow and profits increase, it is theorized that this economic growth will benefit all layers of society, leading to a more robust economy overall.

In contrast, supply-side economics is a broader term often associated with trickle-down concepts, focusing mainly on tax cuts and deregulation as means to improve economic productivity. Keynesian economics advocates for government intervention and spending to boost demand, especially during economic downturns. Marxist economics focuses on class struggle and the critiques of capitalism rather than proposing strategies for economic growth through tax policies. These distinctions clarify why trickle-down economics is the correct answer in this context.