supply-side economics

British  

noun

1. (functioning as singular) a school of economic thought that emphasizes the importance to a strong economy of policies that remove impediments to supply

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supply-side economics Cultural  

1. An economic theory that holds that, by lowering taxes on corporations, government can stimulate investment in industry and thereby raise production, which will, in turn, bring down prices and control inflation. The theory also favors improvements in education and training to make workers more productive and reducing the welfare state (see also welfare state) to spur individuals to work harder. Supply-siders focus on increasing the supply of goods rather than stimulating demand by granting subsidies to the public. Supply-side economics influenced the presidency of Ronald Reagan.

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Example Sentences

Consistent with the reformulation of cultural issues, conservatives in the 1970s put a positive spin on their pro-business policies, labeling them "supply-side economics."

From Salon • Jul. 16, 2022

I think it helps to start by thinking about what Reaganism was, what supply-side economics was, what was it responding to.

From Slate • Apr. 6, 2021

President Ronald Reagan’s budget director, David Stockman, admitted in 1981 that he had his doubts about whether supply-side economics added up.

From Washington Post • Sep. 23, 2020

The economist Robert Mundell had predicted all of this in the early 1970s, offering an alternative to the standard theory that came to be known as supply-side economics.

From New York Times • Oct. 4, 2017

His economic policies, called Reaganomics by the press, were based on a theory called supply-side economics, about which many economists were skeptical.

From Textbooks • Dec. 30, 2014