Ruto is defend a “bottom-up” economic model that he says would empower millions of Kenyans struggling to make ends meet.
At the Kirinyaga rally, he mentioned the alternative, a “runoff” economic model, had not worked in Kenya.
“Even the President of the United States, Joe Biden, has confirmed that the trickle-down economic model has failed and that’s why in America today they are working on a bottom-up economic model,” Ruto said.
Biden took an oath as US President on January 20, 2021. Two months later, he mentioned that “runoff doesn’t work”.
“It’s time we built an economy that grows from the bottom up and from the middle,” Biden said. mentioned.
He say again this on April 5, 2021. Promoting a bottom-up economic model is also part of Biden’s policy economic project.
Prof XN Iraq teaches economics to University of Nairobi. He told Africa Check that the trickle-down business model is based on the idea that “tax and other incentives help big business [to] grow and create jobs.
“But because the inducement givers, [by which I mean] politicians, have a vested interest, the runoff is slowed…the word ‘runoff’ itself shows that the benefits should not be so great – not a deluge! Iraki said.
Public finance think tank says there’s ‘no consensus’ on trickling down vs. up
Biden possesses said the “trickle down” business model was not working. We will therefore be generous and rate it as correct on this statement. But it’s debatable if he “confirmed” it.
Dr. Abraham Rugo is the Country Manager Kenya for the International budget partnership, a public finance and budget think tank. He told Africa Check that “bottom up” and “trickle down” are “perspectives on how to prepare and distribute the national cake”.
“There is no consensus on which of these perspectives works or not,” he said. Both had weaknesses that were amplified depending on the context.
“In the United States, the trickle-down approach has led to massive inequality and poverty amid great wealth,” Rugo said. “In South Africa, the black empowerment policy, which can be seen as bottom-up, also has its own challenges.” –Makinia Juma