USA HISTORY

Detailed explanation-1: -What Is Supply-Side Economics? Supply-side economics is a theory that maintains that increasing the supply of goods and services is the engine for economic growth. It advocates tax cuts as a way to encourage job creation, business expansion, and entrepreneurial activity.

Detailed explanation-2: -A key selling point of supply-side economics is that tax cuts actually increase overall tax revenue by boosting employment and the incomes of the population and, therefore, don’t leave the country in more debt. This view has gained political currency but isn’t backed by much concrete evidence.

Detailed explanation-3: -Today, hardly any economist believes what the Keynesians believed in the 1970s and most accept the basic ideas of supply-side economics – that incentives matter, that high tax rates are bad for growth, and that inflation is fundamentally a monetary phenomenon.