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