The trickle-down effect is an important aspect with respect to the vertical definition of inequality. The trickle-down idea entails tax cuts for corporations and businesses along with fewer restrictions (Kenton, 2021). This increases the money available for private sectors, which supports the increase in company investments, the development of factories, upgraded technology, upgraded/more equipment, and eventually the ensuing increase in job prospects. This improves productivity and encourages economic growth (Kenton, 2021). In turn, the new employees’ increased disposable income will be spent on retail purchases, investments, and other economic activities. In turn, this will drive up demand for products and services across the economy while creating even more new jobs. In principle, this is a positive feedback loop in which the trickle-down effect diminishes income inequalities. Despite this, the theory of the trickle-down effect fails to hold up in practice. The International Monetary Fund (Dabla-Norris et al., 2015) proved that the income benefits do not flow down. Instead, the firm owners hoard the wealth in order to accumulate more. Additionally, the American Economic Journal argued that the people who were earning more exploited this tax cut and used it as a strategy to enhance their pay. This meant that the money was not trickling down to the lower-income earners (Piketty et al., 2014). The gains that should be trickling down keep accumulating at the top (Kenton, 2021), worsening the economic gap between persons of different incomes. Therefore, income inequalities rise and result in an increase in individual inequalitie>