Supply side economics, also known as Reaganomics, is a form of economic theory that emphasizes the importance of incentives for individuals and businesses in order to increase economic growth. This theory is based on the idea that the supply of goods and services determines the overall health of an economy. In this article, we will explore the main principles of supply side economics, its history, and its impact on the economy.
The main principles of supply side economics can be summed up as follows:
- Tax cuts: The theory asserts that tax cuts, especially for businesses and the wealthy, will lead to increased investment and growth.