flypaper theory

The 'flypaper theory' is used in both economics and military strategy to describe situations where burdens or threats are contained rather than dispersed.

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Definition

C1Economics

(technical, academic)The idea that the burden of a tax remains with those who are directly taxed, rather than being distributed throughout the economy.

Example

  • According to the flypaper theory, a tax on luxury goods primarily affects the sellers rather than being passed on to consumers.

C1Military Strategy

(technical, academic)The strategy of drawing enemies into a specific area to manage and neutralize them more effectively.

Example

  • The military used the flypaper theory to lure insurgents into a region where they could be easily targeted.