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.

Bibliography

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

References in periodicals archive ?
To know more about the dJAX Supply Side Platform, drop in to the following site:
In the fall of 2016, Fed Chair Janet Yellen said that running a "high-pressure economy" might help boost investment spending and revive the supply side.
The US launch of LPLDL, CholBiome and CardioBiome at Supply Side West is the first of a number of commercial steps taken to supply LPLDL to food, beverage, consumer healthcare and pharmaceutical partners to be incorporated into final formulations and presentations for distribution and sale into the US market.
Mobfox is a world-leading, data-driven, mobile supply side platform and exchange, providing app developers and publishers the most advanced tools to manage their media smarter.
These measures are driven by the spirit of love and care, devoid of murderous means as evidenced in the current drive to eradicate the supply side.
The director general of the CII stated, that it would be unfortunate if the RBI decides to address supply side created inflation through demand constriction by using interest rate as a tool.
The supply side interventions will be conducted under LEP
The demand side of investment can be shown to push the economic system to the frontier, and the supply side of investment can be shown to push the PPC out.
But certain structural business conditions on the supply side need to be in existence before postulated wage increases could have positive effects.
Certified wood may not yet be a household word, but the scramble on the supply side to meet increasing demand should generate its own publicity.
She will oversee sales, marketing and management of the show and will provide direction for the further development of The Supply Side.
students), demonstrate the credential's appeal to the supply side of the equation and to future generations of CPAs.