supply-side economics

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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.


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

References in periodicals archive ?
The supply side critics lived and worked in the world's premier capitalist economy, the U.
The Laffer Center for Supply Side Economics is a partnership with the Texas Public Policy Foundation which is a non-profit, free-market research institute based in Austin.
The current inflationary pressures are mainly from the supply side constraints of the agricultural products.
Richard Bernstein: I think, first of all, when you talk about dot-coms, you are talking really about the supply side, not the demand side.
Builder Sourcing Corporation (BSC), the largest cost-management group for builders, is launching Supply Side News, an e-newsletter focused solely on supply-side information and cost-saving, margin-improving strategies.
para]]placemedia Adds Over 10 Billion Monthly Impressions to Its Supply Side Programmatic TV Platform with the Addition of Inventory From Networks Including: Reelz, Fuse, Ovation, Outside TV, Tennis Channel and Others[[/para]]
Just like the buying side is global, the supply side also is increasingly global.
On the supply side, lower interest rates have made it possible for inefficient corporations to survive on meagre rates of return on capital.
Another approach to inventory management is to apply service-parts technology to the inbound supply side, namely, "vendor managed inventory" (VMI).
I assumed, as would any regular reader of The Wall Street Journal's editorial page, which Robert Bartley commands, that this book would be a stirring apologia for America's brief walk on the supply side.
SALT LAKE CITY, May 14, 2015 /PRNewswire/ -- placemedia, the fully automated supply side programmatic platform for linear TV, announced today the addition of Chris Raleigh as Chief Commercial Officer, a new position where he will oversee inventory aggregation with media company partners and company wide revenue generation from advertisers, agencies and demand side partners.
From the political viewpoint, therefore, supply side reform via higher interest rates is a hideous prospect.