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Supply Side Economics

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“Reganomics” Supply-side economics is the theory that by lowing taxes on corporations, government can stimulate investment in industries, raising production, which will in turn lower prices and control inflation. It seeks a cause and effect relationship between lowering marginal rates on capital and economic expansion. Supply side economics developed in the 1970s, in response to Keynesian economics. Keynesian economics is the theory of total spending in the economic, otherwise known as aggregated demand. Keynesian economics failed to stabilize the western economic during the stagflation in the 70s. After it failed, many people stop supporting Keynesian and moved to Supply-side economics. It became popular when President Reagan began promoted

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