Supply-side economics
A theory of economics which states that reductions in tax rates will stimulate investment and in turn will benefit the entire society. | ||||
Search Dictionary:
Supply - side economics definition was found in categories: Language, Idioms & Slang(1) Social Science(2) Business & Finance(1) Society & Culture(1) Encyclopedia(1)
Supply - side economics Definition from Language, Idioms & Slang Dictionaries & Glossaries
| WordNet 2.0 |
supply-side economics
Noun
1. the school of economic theory that stresses the costs of production as a means of stimulating the economy; advocates policies that raise capital and labor output by increasing the incentive to produce
(hypernym) economics, economic science, political economy
Noun
1. the school of economic theory that stresses the costs of production as a means of stimulating the economy; advocates policies that raise capital and labor output by increasing the incentive to produce
(hypernym) economics, economic science, political economy
| Environmental Economics Glossary |
Supply-Side Economics
Focus on the effects of national output potential or supply through reduction of taxes and government regulation for businesses designed to increase productivity and economic growth.
Focus on the effects of national output potential or supply through reduction of taxes and government regulation for businesses designed to increase productivity and economic growth.
| A Glossary of Political Economy Terms |
Supply-side economics
A school of thought within the economics profession emphasizing that the main source of a country's economic growth is constant improvement in the efficiency with which resources are allocated for production. While the policy recommendations of the rival Keynesian school tend to focus almost entirely on what government can do to stimulate or restrain aggregate demand in the short-run so as to even out the business cycle, supply-side policy analysts focus on barriers to higher productivity -- identifying ways in which the government can promote faster economic growth over the long haul by removing impediments to the supply of, and efficient use of, the factors of production. Supply-siders believe that unwise provisions of the tax laws (and especially high marginal rates of personal and corporate income taxation) produce very damaging incentives that lead people to work less and to invest less (and to do both less efficiently) than they otherwise would. Supply-side policy recommendations typically include deregulation of heavily regulated industries, promotion of greater competition through lowering protectionist barriers to international trade, and measures to repeal special subsidies and tax loopholes targeting particular industries in favor of lower and more uniform tax rates across the board. Supply-side economics became particularly well-known to the general public during the 1980s because of its advocacy by one influential faction of economic policy-makers in the Reagan administration, leading to the use of the term "Reaganomics" to denote many of the ideas of the supply-siders. Supply-siders played a much smaller role in economic policy-making under the Bush administration, as the focus of attention shifted toward controlling the size of the budget deficit and away from the earlier "Reaganomics" preoccupation with accelerating the country's rate of economic growth.
A school of thought within the economics profession emphasizing that the main source of a country's economic growth is constant improvement in the efficiency with which resources are allocated for production. While the policy recommendations of the rival Keynesian school tend to focus almost entirely on what government can do to stimulate or restrain aggregate demand in the short-run so as to even out the business cycle, supply-side policy analysts focus on barriers to higher productivity -- identifying ways in which the government can promote faster economic growth over the long haul by removing impediments to the supply of, and efficient use of, the factors of production. Supply-siders believe that unwise provisions of the tax laws (and especially high marginal rates of personal and corporate income taxation) produce very damaging incentives that lead people to work less and to invest less (and to do both less efficiently) than they otherwise would. Supply-side policy recommendations typically include deregulation of heavily regulated industries, promotion of greater competition through lowering protectionist barriers to international trade, and measures to repeal special subsidies and tax loopholes targeting particular industries in favor of lower and more uniform tax rates across the board. Supply-side economics became particularly well-known to the general public during the 1980s because of its advocacy by one influential faction of economic policy-makers in the Reagan administration, leading to the use of the term "Reaganomics" to denote many of the ideas of the supply-siders. Supply-siders played a much smaller role in economic policy-making under the Bush administration, as the focus of attention shifted toward controlling the size of the budget deficit and away from the earlier "Reaganomics" preoccupation with accelerating the country's rate of economic growth.
Supply - side economics Definition from Business & Finance Dictionaries & Glossaries
| Raynet Business & Marketing Glossary |
Supply-side Economics
concerned with the supply of labour and capital in the economy (see demand-side economics).
concerned with the supply of labour and capital in the economy (see demand-side economics).
Supply - side economics Definition from Society & Culture Dictionaries & Glossaries
| Social Work in Canada |
Supply-side economics
The theory that lowering tax rates will increase economic growth and tax collections. Specifically, tax cuts allow entrepreneurs to invest their tax savings in new jobs and equipment, causing more people to earn more money, who collectively pay more taxes, albeit at lower individual rates. The Laffer Curve was an attempt to graph such a relationship between tax rates and tax collections. To critics in the early 80s who said that tax cuts without spending cuts would increase the deficit, supply-siders claimed that growth would be so tremendous that the economy would simply outgrow the deficit. Early supply-side economists also believed in Say's Law ("Supply creates its own demand"), hence the name, supply-side economics.
The theory that lowering tax rates will increase economic growth and tax collections. Specifically, tax cuts allow entrepreneurs to invest their tax savings in new jobs and equipment, causing more people to earn more money, who collectively pay more taxes, albeit at lower individual rates. The Laffer Curve was an attempt to graph such a relationship between tax rates and tax collections. To critics in the early 80s who said that tax cuts without spending cuts would increase the deficit, supply-siders claimed that growth would be so tremendous that the economy would simply outgrow the deficit. Early supply-side economists also believed in Say's Law ("Supply creates its own demand"), hence the name, supply-side economics.
Supply - side economics Definition from Encyclopedia Dictionaries & Glossaries
| Wikipedia English - The Free Encyclopedia |
Supply-side economics
Supply-side economics is a school of macroeconomic thought that argues that economic growth can be most effectively created using incentives for people to produce (supply) goods and services, such as adjusting income tax and capital gains tax rates. This can be contrasted with the classic Keynesian economics or demand side economics, which argues that growth can be most effectively managed by controlling total demand for goods and services, typically by adjusting the level of Government spending. Supply-side economics is often conflated with trickle-down economics. The term was coined by journalist Jude Wanniski in 1975, and popularised the ideas of economists Robert Mundell and Arthur Laffer.
| See more at Wikipedia.org... |