The idea of this theory is based on the premise that the increase in wealth of the top-earners will be used to stimulate economic activity through investment. these investments will in turn benefit the middle and lower class the form of demand for workers, creating more job position and decrease unemployment.
The increase in number of worker also raise the amount of tax generated,which can be used by the government to develop other sectors, thus benefiting the economy as a whole. Investments in capital goods can also lead to more efficient production and increase consumer accessibility to goods.