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Article: Supply-Side Economics
- Article from:
- Gale Encyclopedia of U.S. Economic History
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SUPPLY-SIDE ECONOMICS
Reawakened in the United States in the late 1970s and early 1980s, the theory of supply-side economics looked at economic behavior by analyzing the supply of consumer items instead of the demand for them. This view of economics specifically focuses on the disincentive effects of taxes on private sector productivity, investment, and growth. Supply-side economists argues that reducing the tax rates on the supply-side would lead to greater economic growth, greater employment, and larger bottom-line tax revenues later.
Supply-side economics is not new in economic thought; its roots can be traced to Jean Baptiste Say's
Treatise on Political Economy and Taxation
(1817). ...