Supply-side Economics
That economic growth can be created by lowering taxes and decreasing regulation
Real World Example
Supply-side economics became prominent during the conservative era of 1980-1993, especially under U.S. President Ronald Reagan. It responded to economic problems like high inflation and unemployment by advocating for lower taxes and reduced government regulation, aiming to stimulate business investment and economic growth. This approach was important because it promised to boost the economy by encouraging businesses to produce more, which in theory would create jobs and raise incomes. Today, the concept still matters as debates continue about the best ways to promote economic growth, especially in discussions about tax policies and government regulations. For instance, when a local government reduces business taxes, a nearby factory may expand, potentially offering more jobs to community members, illustrating how these policies can impact everyday life.
