Prime Minister Andrew Holness says his administration does not subscribe to trickle-down economics.

Holness, during his contribution to the 2024/2025 Budget Debate in the House of Representatives on Thursday (March 21), said the recent Local Government Election highlighted the concerns of the Jamaican people, chief among them were poor road conditions, lack of water and poor garbage collection.

However, the prime minister noted that while the country has seen some economic gains recently, it does not mean Jamaicans are going to benefit automatically.

“We are a listening government. We are a learning government, but above all, we are a caring and responsive government. We will continue on the path of fiscal responsibility to build a strong and vibrant economy that generates surpluses and we will use these surpluses to care for the people’s needs. The Jamaica Labour Party that I lead does not subscribe to trickle-down economics,” Holness said.

Popularised by former US president Ronald Reagan, trickle-down economics is a wealth distribution theory that prioritises giving tax incentives to rich companies and individuals in an effort to boost supply-side factors. In the short term, these benefits are given to the wealthy, but over the long-term, the more relaxed regulations and tax cuts create a boost in company investment and individual spending.

“At the 2012 annual conference of the Jamaica Labour Party, I outlined our policy thinking to the Jamaican people. I said then, that the Jamaica Labour Party does not believe in trickle-down theory, we do not believe that, because there is economic growth, people are automatically going to benefit,” he added.

Holness further said his administration believes in political activism by putting policies in place to ensure that while the economy is growing, the Jamaican people are benefiting.

“We use economic gains to implement people-centred policies that care for and protect the most vulnerable among us and ensure that the gains are shared equitably to improve the lives of all Jamaicans.  We are deliberate in what we do to help the poor, we are the government that cares for the poor and working class, not just in talk but with action,” the prime minister said.