Mises Institute published “The Real Trickle-Down Effect: Making “Luxuries” Affordable to Regular People” by Matthew Lipton on 6/24/2021
Full article – https://mises.org/wire/real-trickle-down-effect-making-luxuries-affordable-regular-people
Excerpts:
“In general, capitalism reveals a trickle-down effect by making luxury goods affordable to the masses. Through intense competition, capitalism drives down costs, thereby allowing ordinary people to access luxuries. For instance, in 2011, 35 percent of Americans owned a smartphone, and today the figure is 85 percent.”
“… capitalists lower costs by innovating, and innovations unleash a ripple effect throughout the economy. A case in point is the creation of the steam engine. Not only did the steam engine make it possible for people to travel within countries, but decreasing transportation costs resulted in the advent of international tourism. According to Marian Tupy: “Early steamships cut the sailing time from London to New York from about six weeks to 15 days…. But today an aeroplane can fly between the two cities in 8 hours.”
Yet it should be noted that capitalism also fuels entrepreneurship by ensuring the widespread availability of luxury goods. For example, many use their phones to launch businesses with an international scope. Moreover, the cellphone has promoted financial inclusion by increasing the involvement of poor people in the financial sector.”