Connor Norton - What happened when North Carolina cut taxes like the GOP plans to for the country

The congressional GOP is currently in the process of passing a major overhaul of the tax plan, the main feature of which is a series of tax cuts for all classes (but disproportionately for the upper class, as explained by the Balance, Time, Business Insider, and the Washington Post). Many of the tax cuts for the upper class are based on the theory of trickle-down economics, the idea that when the top 1% have more money they will take said money and invest it back into the economy by putting it into goods and services as well as investing in small businesses; however, the issue with that theory is that it has been proven that when the top 1% are further enriched, let's say through a major tax cut, they invest not in the economy but instead in personal financial assets and savings, meaning large sums of money originally circulating through the federal government are instead being stockpiled at home or in shell companies overseas (even worse) because, of course, when people have access to greater wealth they make sure that they can maintain that wealth, and although healthy for the economy, private investment can be a pretty risky way to use your cold hard cash.

The affects of putting this economic theory into practice can be seen in the Panic of 1896, an extension of the Panic of 1893 caused in part by a hoarding of cash by the upper class during the middle of a recession (according to economist John Kenneth Galbraith); and although we are not currently in a recession, the negative effects of concentrating a lot of money in a few people can become present in any economy, as seen when it successfully stalled the American economy for another year and left enough financial institutions in ruin that it took many more years to fully reverse the "acute depression's" repercussions.