A derogatory term for supply-side economics,
which is a macroeconomic theory stating that a government can best promote growth
by providing incentives for persons to produce goods and services. The primary
way a supply-side oriented government does this is by maintaining low tax rates
so that investors and entrepreneurs may use their money for production.
Maintaining low tax rates on the wealthy is one of the most important and
controversial aspects of supply-side economics; the theory states that well off
persons have the capital available to produce goods and services and thereby
create jobs and grow the economy. Critics contend that this does not happen in
reality, and that the wealthy are more likely to keep, rather than invest,
their money. It is also known as Reaganomics, and acquired the name because it
was crucial to the economic policies of the administration of U.S. President Ronald
Jul 26th, 2014
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