It’s a “Follow-the-Money Public Reinvestment Formula”: a practical way for citizens, journalists, researchers, or policymakers to check whether economic value actually flows back into the public — or whether “trickle-down” remains mostly theoretical.

The Core Formula

Public Reinvestment Rate =

Money Returned to the Public ÷ Total Economic Value Created × 100

Or:

PRR = (Public Benefit Flows / Total Economy) × 100

Where:

Public Benefit Flows =

Taxes Paid

+ Public Wages

+ Public Infrastructure Spending

+ Healthcare Spending

+ Education Spending

+ Housing Support

+ Social Security / Welfare

+ Cultural Funding

+ Climate / Environmental Investment

+ Local Community Investment

– Public Money Captured by Private Extraction

So the fuller formula becomes:

Public Reinvestment Rate =

(

Taxes Paid

+ Public Services

+ Social Transfers

+ Public Infrastructure

+ Civic / Cultural / Environmental Investment

– Private Capture of Public Money

)

÷ Total Economic Output

× 100

The “Trickle-Down Reality Check” Formula

To test whether trickle-down is actually happening, you need to compare money going upward versus money returning downward/outward into public life.

Trickle-Down Reality Score =

Public Reinvestment Flows ÷ Private Accumulation Flows × 100

Where:

Private Accumulation Flows =

Corporate Profits

+ Shareholder Dividends

+ Stock Buybacks

+ Executive Bonuses

+ Wealth Extraction

+ Tax Avoidance

+ Privatized Public Contracts

+ Rent / Monopoly Gains

So:

Trickle-Down Reality Score =

Public Benefit Flows ÷ Private Accumulation Flows × 100

Interpretation

100% or higher = The economy returns as much to public life as it extracts upward.

50% = For every €1 captured privately, about €0.50 returns to the public.

10% = For every €1 captured privately, only €0.10 returns to the public.

Below 10% = Trickle-down is mostly symbolic, not structural.

The Citizen-Friendly Version

Ask this:

For every €100 created by the economy, how many euros come back as public benefit?

Example:

Total economy created: €100 billion

Returned to public:

Taxes: €20B

Education: €8B

Healthcare: €12B

Infrastructure: €6B

Housing: €3B

Culture: €1B

Climate investment: €4B

Total public reinvestment: €54B

Public Reinvestment Rate:

€54B ÷ €100B × 100 = 54%

So the economy has a 54% Public Reinvestment Rate.

But then subtract extraction:

Private capture from public systems:

Subsidies to profitable corporations: €5B

Tax avoidance: €7B

Privatized contract leakage: €3B

Bailouts without public equity: €4B

Total private capture: €19B

Adjusted formula:

Adjusted Public Reinvestment =

€54B – €19B = €35B

Adjusted Public Reinvestment Rate =

€35B ÷ €100B × 100 = 35%

So the real reinvestment rate drops from 54% to 35%.

That difference is the hidden economy of capture.

SolidRed Formula Name

You could call it:

The Public Return Index

PRI = ((Public Benefit Flows – Private Capture) / Total Economic Value) × 100

Or more sharply:

The Trickle-Down Verification Formula

TDV = ((Public Benefit Flows – Public-to-Private Leakage) / Private Wealth Accumulation) × 100

Plain-English Website Copy

You can use this directly:

The Public Return Index measures whether the economy actually reinvests in the public.

Instead of asking whether the economy is growing, it asks a more important question: where does the money go after it is created?

The formula follows the money from production, taxation, profit, subsidies, public spending, private contracts, shareholder returns, wages, infrastructure, education, healthcare, housing, climate investment, and social support.

If economic value mostly moves upward into private accumulation, shareholder extraction, tax avoidance, monopoly rent, and executive reward, then trickle-down is not happening.

If economic value visibly returns through public services, fair wages, infrastructure, education, healthcare, housing, culture, sustainability, and civic resilience, then the economy is functioning as a public engine.

The formula is simple:

Public Return Index = Public Benefit minus Private Capture, divided by Total Economic Value, multiplied by 100.

In short:

For every €100 the economy creates, how much comes back to the people?

Most Important Version

Public Return Index =

((Taxes + Public Services + Social Transfers + Public Investment + Fair Wage Growth)

–

(Subsidies to Extractive Firms + Tax Avoidance + Bailouts + Privatized Leakage + Shareholder Extraction))

÷ GDP

× 100

This gives people a practical way to check whether the economy is actually circulating value back into society — or simply using “growth” as a story while the money moves upward.

A balance scale weighing public goods against gold skyscrapers in a cityscape.

Appendix A — The Public Return Index Algorithm

A1. Purpose

The Public Return Index measures how much economic value returns to the public after subtracting forms of private capture, leakage, extraction, and upward accumulation.

It answers one central question:

For every €100 created by the economy, how much comes back to the people?

A2. Core Formula

Public Return Index =

((Public Benefit Flows – Private Capture Flows) / Total Economic Value) × 100

Short version:

PRI = ((PBF – PCF) / TEV) × 100

Where:

PRI = Public Return Index

PBF = Public Benefit Flows

PCF = Private Capture Flows

TEV = Total Economic Value

A3. Public Benefit Flows

Public Benefit Flows are all economic flows that visibly return value to society.

PBF =

Taxes Paid

+ Public Services

+ Social Transfers

+ Public Infrastructure

+ Healthcare Spending

+ Education Spending

+ Housing Support

+ Climate / Environmental Investment

+ Cultural Funding

+ Local Community Investment

+ Fair Wage Growth

+ Public Research / Open Knowledge Investment

In formula form:

PBF = T + PS + ST + PI + H + E + HS + CEI + CF + LCI + FWG + OKI

Where:

T = Taxes Paid

PS = Public Services

ST = Social Transfers

PI = Public Infrastructure

H = Healthcare Spending

E = Education Spending

HS = Housing Support

CEI = Climate / Environmental Investment

CF = Cultural Funding

LCI = Local Community Investment

FWG = Fair Wage Growth

OKI = Public Research / Open Knowledge Investment

A4. Private Capture Flows

Private Capture Flows are all economic flows where public value, public money, or socially created wealth is captured privately without equivalent public return.

PCF =

Subsidies to Extractive Firms

+ Tax Avoidance

+ Bailouts Without Public Equity

+ Privatized Public Contract Leakage

+ Shareholder Extraction

+ Stock Buybacks

+ Excessive Executive Compensation

+ Monopoly / Rent Extraction

+ Public Asset Sell-Offs

+ Debt Extraction from Households

In formula form:

PCF = SEF + TA + BPE + PPCL + SX + SB + EEC + MRE + PAS + DEH

Where:

SEF = Subsidies to Extractive Firms

TA = Tax Avoidance

BPE = Bailouts Without Public Equity

PPCL = Privatized Public Contract Leakage

SX = Shareholder Extraction

SB = Stock Buybacks

EEC = Excessive Executive Compensation

MRE = Monopoly / Rent Extraction

PAS = Public Asset Sell-Offs

DEH = Debt Extraction from Households

A5. Total Economic Value

Total Economic Value is the economic base being measured.

For a country, this is usually:

TEV = GDP

For a city, sector, corporation, or project, it can be:

TEV = Total Revenue

or:

TEV = Gross Value Added

or:

TEV = Total Budget / Total Economic Activity

A6. Final Algorithm

Step 1:

Define the economy being measured.

Example: country, city, sector, company, public project, supply chain, or platform.

Step 2:

Calculate Total Economic Value.

TEV = GDP, revenue, budget, or gross value added.

Step 3:

Add all Public Benefit Flows.

PBF = taxes + services + transfers + infrastructure + education + healthcare + housing + climate + culture + local investment + wage growth + open knowledge.

Step 4:

Add all Private Capture Flows.

PCF = subsidies to extractive firms + tax avoidance + bailouts without equity + privatized leakage + shareholder extraction + buybacks + executive excess + monopoly rents + asset sell-offs + household debt extraction.

Step 5:

Subtract Private Capture from Public Benefit.

Net Public Return = PBF – PCF

Step 6:

Divide Net Public Return by Total Economic Value.

Step 7:

Multiply by 100.

Step 8:

Interpret the result as a percentage.

A7. Final Equation

PRI =

(

T + PS + ST + PI + H + E + HS + CEI + CF + LCI + FWG + OKI

)

–

(

SEF + TA + BPE + PPCL + SX + SB + EEC + MRE + PAS + DEH

)

÷ TEV

× 100

A8. Interpretation Scale

PRI above 70%

Strong public-return economy.

Most economic value visibly circulates back into public life.

PRI between 50% and 70%

Moderate-to-healthy public-return economy.

Public systems receive meaningful reinvestment, but private extraction may still be significant.

PRI between 30% and 50%

Weak trickle-down economy.

Some value returns to the public, but much is captured upward.

PRI between 10% and 30%

Extraction-heavy economy.

Growth exists, but public benefit is limited.

PRI below 10%

Symbolic trickle-down.

The economy mainly accumulates value privately while returning little to society.

PRI below 0%

Net public extraction.

More value is being captured from the public than returned to it.

A9. Trickle-Down Verification Score

A second formula can compare public return directly against private accumulation.

Trickle-Down Verification Score =

Public Benefit Flows / Private Accumulation Flows × 100

Or adjusted:

Adjusted Trickle-Down Verification Score =

(Public Benefit Flows – Private Capture Flows) / Private Accumulation Flows × 100

Where:

Private Accumulation Flows =

Corporate Profits

+ Shareholder Dividends

+ Stock Buybacks

+ Executive Bonuses

+ Monopoly Rent

+ Tax Avoidance

+ Wealth Hoarding

Interpretation:

100% or higher =

Public return equals or exceeds private accumulation.

50% =

For every €1 accumulated privately, €0.50 returns to public life.

10% =

For every €1 accumulated privately, €0.10 returns to public life.

Below 10% =

Trickle-down is mostly ideological, not measurable.

Appendix B — Programmable Code

Below is a simple programmable version in JavaScript. It can be used on a website, in a dashboard, or inside a WordPress page with minor adaptation.

B1. JavaScript Version

/**

* Public Return Index Calculator

* Measures how much economic value returns to the public

* after subtracting private capture and extraction.

function calculatePublicReturnIndex(data) {

const publicBenefitFlows =

data.taxesPaid +

data.publicServices +

data.socialTransfers +

data.publicInfrastructure +

data.healthcareSpending +

data.educationSpending +

data.housingSupport +

data.climateEnvironmentalInvestment +

data.culturalFunding +

data.localCommunityInvestment +

data.fairWageGrowth +

data.openKnowledgeInvestment;

const privateCaptureFlows =

data.subsidiesToExtractiveFirms +

data.taxAvoidance +

data.bailoutsWithoutPublicEquity +

data.privatizedPublicContractLeakage +

data.shareholderExtraction +

data.stockBuybacks +

data.excessiveExecutiveCompensation +

data.monopolyRentExtraction +

data.publicAssetSellOffs +

data.householdDebtExtraction;

const netPublicReturn = publicBenefitFlows – privateCaptureFlows;

const publicReturnIndex =

(netPublicReturn / data.totalEconomicValue) * 100;

return {

totalEconomicValue: data.totalEconomicValue,

publicBenefitFlows: publicBenefitFlows,

privateCaptureFlows: privateCaptureFlows,

netPublicReturn: netPublicReturn,

publicReturnIndex: publicReturnIndex,

interpretation: interpretPRI(publicReturnIndex)

};

}

function interpretPRI(score) {

if (score >= 70) {

return “Strong public-return economy”;

}

if (score >= 50) {

return “Moderate-to-healthy public-return economy”;

}

if (score >= 30) {

return “Weak trickle-down economy”;

}

if (score >= 10) {

return “Extraction-heavy economy”;

}

if (score >= 0) {

return “Symbolic trickle-down economy”;

}

return “Net public extraction”;

}

B2. Example Usage

const economyData = {

totalEconomicValue: 100000000000,

taxesPaid: 20000000000,

publicServices: 10000000000,

socialTransfers: 8000000000,

publicInfrastructure: 6000000000,

healthcareSpending: 12000000000,

educationSpending: 8000000000,

housingSupport: 3000000000,

climateEnvironmentalInvestment: 4000000000,

culturalFunding: 1000000000,

localCommunityInvestment: 2000000000,

fairWageGrowth: 3000000000,

openKnowledgeInvestment: 1000000000,

subsidiesToExtractiveFirms: 5000000000,

taxAvoidance: 7000000000,

bailoutsWithoutPublicEquity: 4000000000,

privatizedPublicContractLeakage: 3000000000,

shareholderExtraction: 9000000000,

stockBuybacks: 6000000000,

excessiveExecutiveCompensation: 2000000000,

monopolyRentExtraction: 5000000000,

publicAssetSellOffs: 1000000000,

householdDebtExtraction: 3000000000

};

const result = calculatePublicReturnIndex(economyData);

console.log(result);

B3. Example Output

{

totalEconomicValue: 100000000000,

publicBenefitFlows: 78000000000,

privateCaptureFlows: 45000000000,

netPublicReturn: 33000000000,

publicReturnIndex: 33,

interpretation: “Weak trickle-down economy”

}

Meaning:

For every €100 created by the economy,

€33 returns to the public after private capture is subtracted.

B4. HTML Calculator Version

This version can be pasted into a test HTML file or adapted into WordPress.

<h2>Public Return Index Calculator</h2>

<label>Total Economic Value</label>

<h3>Public Benefit Flows</h3>

<label>Taxes Paid</label>

<label>Public Services</label>

<label>Social Transfers</label>

<label>Public Infrastructure</label>

<label>Healthcare Spending</label>

<label>Education Spending</label>

<label>Housing Support</label>

<label>Climate / Environmental Investment</label>

<label>Cultural Funding</label>

<label>Local Community Investment</label>

<label>Fair Wage Growth</label>

<label>Open Knowledge Investment</label>

<h3>Private Capture Flows</h3>

<label>Subsidies to Extractive Firms</label>

<label>Tax Avoidance</label>

<label>Bailouts Without Public Equity</label>

<label>Privatized Public Contract Leakage</label>

<label>Shareholder Extraction</label>

<label>Stock Buybacks</label>

<label>Excessive Executive Compensation</label>

<label>Monopoly / Rent Extraction</label>

<label>Public Asset Sell-Offs</label>

<label>Household Debt Extraction</label>

<button onclick=”calculatePRI()”>Calculate Public Return Index</button>

</div>

function sumInputs(selector) {

const inputs = document.querySelectorAll(selector);

let total = 0;

inputs.forEach(function(input) {

total += Number(input.value) || 0;

});

return total;

}

function interpretPRI(score) {

if (score >= 70) {

return “Strong public-return economy”;

}

if (score >= 50) {

return “Moderate-to-healthy public-return economy”;

}

if (score >= 30) {

return “Weak trickle-down economy”;

}

if (score >= 10) {

return “Extraction-heavy economy”;

}

if (score >= 0) {

return “Symbolic trickle-down economy”;

}

return “Net public extraction”;

}

function calculatePRI() {

const totalEconomicValue =

Number(document.getElementById(“totalEconomicValue”).value) || 0;

const publicBenefitFlows = sumInputs(“.public-flow”);

const privateCaptureFlows = sumInputs(“.capture-flow”);

if (totalEconomicValue <= 0) {

document.getElementById(“pri-result”).innerHTML =

“<p>Please enter a Total Economic Value greater than zero.</p>”;

return;

}

const netPublicReturn = publicBenefitFlows – privateCaptureFlows;

const publicReturnIndex =

(netPublicReturn / totalEconomicValue) * 100;

const interpretation = interpretPRI(publicReturnIndex);

document.getElementById(“pri-result”).innerHTML = `

<h3>Result</h3>

<p><strong>Public Benefit Flows:</strong> €${publicBenefitFlows.toLocaleString()}</p>

<p><strong>Private Capture Flows:</strong> €${privateCaptureFlows.toLocaleString()}</p>

<p><strong>Net Public Return:</strong> €${netPublicReturn.toLocaleString()}</p>

<p><strong>Public Return Index:</strong> ${publicReturnIndex.toFixed(2)}%</p>

<p><strong>Interpretation:</strong> ${interpretation}</p>

}

</script>

B5. Optional CSS Styling

#pri-calculator {

max-width: 800px;

padding: 2rem;

background: #ffffff;

color: #000000;

border: 4px solid #000000;

font-family: Arial, sans-serif;

}

#pri-calculator h2,

#pri-calculator h3 {

text-transform: uppercase;

letter-spacing: 0.04em;

}

#pri-calculator label {

display: block;

margin-top: 1rem;

font-weight: bold;

}

#pri-calculator input {

width: 100%;

padding: 0.75rem;

margin-top: 0.25rem;

border: 2px solid #000000;

font-size: 1rem;

}

#pri-calculator button {

margin-top: 2rem;

padding: 1rem 1.5rem;

background: #000000;

color: #ffffff;

border: none;

font-weight: bold;

text-transform: uppercase;

cursor: pointer;

}

#pri-calculator button:hover {

background: #ff1493;

color: #000000;

}

#pri-result {

margin-top: 2rem;

padding: 1rem;

border: 3px solid #000000;

background: #f4f4f4;

}

B6. Minimal WordPress Shortcode Version

Add this to a small custom plugin or to functions.php in a child theme.

function solidred_public_return_index_shortcode() {

ob_start();

<h2>Public Return Index Calculator</h2>

<label>Total Economic Value</label>

<h3>Public Benefit Flows</h3>

<label>Taxes Paid</label>

<label>Public Services</label>

<label>Social Transfers</label>

<label>Public Infrastructure</label>

<label>Healthcare Spending</label>

<label>Education Spending</label>

<label>Housing Support</label>

<label>Climate / Environmental Investment</label>

<label>Cultural Funding</label>

<label>Local Community Investment</label>

<label>Fair Wage Growth</label>

<label>Open Knowledge Investment</label>

<h3>Private Capture Flows</h3>

<label>Subsidies to Extractive Firms</label>

<label>Tax Avoidance</label>

<label>Bailouts Without Public Equity</label>

<label>Privatized Public Contract Leakage</label>

<label>Shareholder Extraction</label>

<label>Stock Buybacks</label>

<label>Excessive Executive Compensation</label>

<label>Monopoly / Rent Extraction</label>

<label>Public Asset Sell-Offs</label>

<label>Household Debt Extraction</label>

<button type=”button” onclick=”calculatePRI()”>Calculate Public Return Index</button>

</div>

function sumInputs(selector) {

const inputs = document.querySelectorAll(selector);

let total = 0;

inputs.forEach(function(input) {

total += Number(input.value) || 0;

});

return total;

}

function interpretPRI(score) {

if (score >= 70) return “Strong public-return economy”;

if (score >= 50) return “Moderate-to-healthy public-return economy”;

if (score >= 30) return “Weak trickle-down economy”;

if (score >= 10) return “Extraction-heavy economy”;

if (score >= 0) return “Symbolic trickle-down economy”;

return “Net public extraction”;

}

function calculatePRI() {

const totalEconomicValue =

Number(document.getElementById(“totalEconomicValue”).value) || 0;

const publicBenefitFlows = sumInputs(“.public-flow”);

const privateCaptureFlows = sumInputs(“.capture-flow”);

if (totalEconomicValue <= 0) {

document.getElementById(“pri-result”).innerHTML =

“<p>Please enter a Total Economic Value greater than zero.</p>”;

return;

}

const netPublicReturn = publicBenefitFlows – privateCaptureFlows;

const publicReturnIndex =

(netPublicReturn / totalEconomicValue) * 100;

const interpretation = interpretPRI(publicReturnIndex);

document.getElementById(“pri-result”).innerHTML = `

<h3>Result</h3>

<p><strong>Public Benefit Flows:</strong> €${publicBenefitFlows.toLocaleString()}</p>

<p><strong>Private Capture Flows:</strong> €${privateCaptureFlows.toLocaleString()}</p>

<p><strong>Net Public Return:</strong> €${netPublicReturn.toLocaleString()}</p>

<p><strong>Public Return Index:</strong> ${publicReturnIndex.toFixed(2)}%</p>

<p><strong>Interpretation:</strong> ${interpretation}</p>

}

</script>

<?php

return ob_get_clean();

}

add_shortcode(‘public_return_index’, ‘solidred_public_return_index_shortcode’);

Then place this shortcode in WordPress:

[public_return_index]

B7. Recommended Public Disclaimer

The Public Return Index is a civic accounting model. It does not claim that every euro can be perfectly traced in real time. Instead, it provides a transparent method for following public benefit, private capture, and economic reinvestment using available budgets, tax data, company filings, subsidy records, procurement data, wage statistics, and public accounts.

Its purpose is not to replace official accounting, but to make economic circulation visible.

It’s a “Follow-the-Money Public Reinvestment Formula”: a practical way for citizens, journalists, researchers, or policymakers to check whether economic value actually flows back into the public — or whether “trickle-down” remains mostly theoretical.

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