supply-side school of economics
E1029127
The supply-side school of economics is a macroeconomic theory that emphasizes boosting economic growth by improving production incentives—such as lowering taxes and reducing regulation—to increase supply, investment, and employment.
Statements (49)
| Predicate | Object |
|---|---|
| instanceOf |
macroeconomic theory
ⓘ
school of economic thought ⓘ |
| advocates |
lower marginal tax rates
ⓘ
reducing barriers to production ⓘ reducing government intervention in markets ⓘ reducing regulation ⓘ |
| alsoKnownAs | supply-side economics ⓘ |
| associatedWith |
Arthur Laffer
NERFINISHED
ⓘ
Jude Wanniski NERFINISHED ⓘ Margaret Thatcher era policies NERFINISHED ⓘ Reaganomics NERFINISHED ⓘ Robert Mundell NERFINISHED ⓘ Ronald Reagan administration NERFINISHED ⓘ |
| claims |
tax cuts can broaden the tax base
ⓘ
tax cuts can increase economic growth ⓘ tax cuts can increase employment ⓘ tax cuts can increase investment ⓘ tax cuts can partly pay for themselves through higher growth ⓘ |
| contrastsWith |
Keynesian demand management
NERFINISHED
ⓘ
demand-side economics ⓘ |
| criticizedBy |
many Keynesian economists
ⓘ
many public finance economists ⓘ |
| criticizedFor |
contributing to income inequality
ⓘ
increasing budget deficits ⓘ overstating revenue effects of tax cuts ⓘ |
| emergedIn | 1970s ⓘ |
| emphasizes |
increasing aggregate supply
ⓘ
investment incentives ⓘ labor supply incentives ⓘ production incentives ⓘ |
| focusesOn | economic growth ⓘ |
| influencedPolicyIn |
United Kingdom
NERFINISHED
ⓘ
United States NERFINISHED ⓘ |
| policyGoal |
expansion of the tax base
ⓘ
higher employment ⓘ higher long-run economic growth ⓘ increased capital formation ⓘ increased productivity ⓘ |
| policyTool |
cuts in capital gains taxes
ⓘ
cuts in corporate tax rates ⓘ cuts in personal income tax rates ⓘ deregulation of industries ⓘ privatization of state-owned enterprises ⓘ tax incentives for saving and investment ⓘ |
| relatedConcept |
pro-growth tax reform
ⓘ
structural reforms in labor markets ⓘ structural reforms in product markets ⓘ trickle-down economics ⓘ |
| usesConcept | Laffer curve NERFINISHED ⓘ |
Referenced by (1)
Full triples — surface form annotated when it differs from this entity's canonical label.