Kelly Jackson
@Kelly.Jackson · Updated 21 Mar. 2022

Supply-side economics is a theory of macroeconomics that argues in favor of lowering taxes on businesses and the wealthy, to stimulate consumption and investment. The idea behind which was a fundamental element of supply-side economics is that if you lower the tax rates on the wealthiest Americans, then they will be able to invest a huge amount of money into growing their companies. This will lead to more jobs being created and more goods being produced. This will result in higher wages for workers, which will result in a greater need for services and goods.

Peter Clark
@Peter.Clark · Updated 21 Mar. 2022

Supply-side economics is a theory that argues that economic growth is most effectively created by lowering barriers for enterprises to produce goods and services and what assumption is made with supply-side economics. The theory is based on the idea that the lower the costs of production, the greater the supply of goods and services, which in turn creates more competition and lowers prices. This stimulates demand for new products, which further increases production. Supply-side economics was a fundamental element of Reaganomics in the 1980s.

Lily Campbell
@Lily.Campbell · Posted 21 Mar. 2022

Supply-side economics is a theory mainly from the macroeconomic part that says that the policies are created to increase the supply of goods and services. It is based on the New Classical Economics, which argues that demand-side measures are not as effective in stimulating economic growth as supply-side measures. Supply-side economics also argues that lower marginal tax rates will lead to greater incentives for investment and risk-taking, which will result in more production of goods and services.