supply-side economics

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Related to Voodoo economics: Reaganomics

supply-side economics,

economic theory that concentrates on influencing the supply of labor and goods as a path to economic health, rather than approaching the issue through such macroeconomic concerns as gross national product. In the United States during the 1980s, supply-side economics was associated with conservative proponents of the free-market system. Such measures as tax cuts and benefit cuts to the unemployed are basic supply-side tactics, with the intention of increasing the incentive to work and produce goods and services. The theory holds that high marginal tax rates and government regulation discourage private investment in areas that fuel economic expansion, and that more capital in the hands of the private sector will "trickle down" to the rest of the population. The theory gained popularity during the late 1970s, with a tax revolt in California and economic hardship during the CarterCarter, Jimmy
(James Earl Carter, Jr.), 1924–, 39th President of the United States (1977–81), b. Plains, Ga, grad. Annapolis, 1946.

Carter served in the navy, where he worked with Admiral Hyman G. Rickover in developing the nuclear submarine program.
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 administration (1977–81). Arthur Laffer and his "Laffer curve" doctrine became the heart of the economic programs of Ronald ReaganReagan, Ronald Wilson
, 1911–2004, 40th president of the United States (1981–89), b. Tampico, Ill. In 1932, after graduation from Eureka College, he became a radio announcer and sportscaster.
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's presidency, during which tax rates were cut substantially. Although supply siders maintain that the tax cuts of the 1980s were responsible for the decade's economic growth, critics argue that such policies caused massive federal deficits, penalized the poor and middle class, and induced excessive speculation that severely damaged America's economy. The subsequent tax increases under Presidents George H. W. Bush and Bill Clinton and the concurrent corporate investment, economic growth, and drop in unemployment during the 1990s further undercut supply-side suppositions.

Bibliography

See V. Canto, Foundations of Supply-Side Economics (1983); R. L. Bartley, The Seven Fat Years (1992).

References in periodicals archive ?
As I said, it is voodoo economics, but unlike the strain proposed by former President Ronald Reagan that is now being promoted by the Republicans in Congress - that large tax cuts will pay for themselves - this new strain threatens us not with financial, but with moral bankruptcy.
Scotland is certainly going to be run over now, and Wales, and the north-east and west of England, indeed all the post-capitalist wastelands where voodoo economics were tested to the destruction of the industrial base last time the Tories lorded it over us.
Yet, they readily dismissed this policy as so much voodoo economics.
Now we're hearing the same old voodoo economics promoted by the Republicans again.
The term voodoo economics was thrown around a lot with Bush and Reagan, and that was a lot more of a stretch, since it was a metaphor.
Mr de Blasio gave hope that people will throw off their apathy and fight the voodoo economics that has come to blight so many lives.
Brown represents aFife decimated by Thatcherism, in a Scotland once the workshop of the world rendered post-industrial by her voodoo economics.
Step two: Argue (usually in defiance of both evidence and common sense) that Reagan's combination of moral leadership, massive deficit spending, and voodoo economics account for that good.
lawbreakers, voodoo economics, budget deficits, toasts to Ferdinand Marcos, public housing cutbacks, red-baiting the nuclear freeze movement, James Watt.
Now it's as clear as ever: Snake oil remedies are still snake oil, and voodoo economics is still voodoo economics.
What seems to rankle Kolko above all else is the appearance among the old Leninist faithful of a species of voodoo economics, Marxist style.
He added: "When one part of the state is printing funny money and lending it to another part of the state, we're into serious voodoo economics.