USA HISTORY

Detailed explanation-1: -Supply-side economics may be seen as the polar opposite of Keynesian economics, or demand-side economics, which asserts that boosting demand for goods and services is the key driver of economic growth. Supply-side economics is sometimes known as Reaganomics for its association with President Ronald Reagan.

Detailed explanation-2: -supply-side economics, also calledtrickle-down economics, theory that focuses on influencing the supply of labour and goods, using tax cuts and benefit cuts as incentives to work and produce goods. It was expounded by the U.S. economist Arthur Laffer (b. 1940) and implemented by Pres. Ronald Reagan in the 1980s.

Detailed explanation-3: -The administration of Republican president Ronald Reagan promoted its fiscal policies as being based on supply-side economics. Reagan made supply-side economics a household phrase and promised an across-the-board reduction in income tax rates and an even larger reduction in capital gains tax rates.

Detailed explanation-4: -The president believed he could encourage strong economic growth, reduce inflation, increase defense spending, and balance the budget while cutting taxes and reducing social welfare programs.

Detailed explanation-5: -These policies are characterized as supply-side economics, trickle-down economics, or “voodoo economics” by opponents, while Reagan and his advocates preferred to call it free-market economics.