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Supply-side economics is a macroeconomic theory postulating that economic growth can be most effectively fostered by lowering taxes, decreasing regulation, and allowing free trade. According to supply-side economics theory, consumers will benefit … Wikipedia
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Wikipedia
en.wikipedia.org › wiki › Supply-side_economics
Supply-side economics - Wikipedia
3 weeks ago - Supply-side economics is a macroeconomic theory postulating that economic growth can be most effectively fostered by lowering taxes, decreasing regulation, and allowing free trade. According to supply-side economics theory, consumers will benefit from greater supply of goods and services at ...
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Econlib
econlib.org › home › cee › supply-side economics
Supply-Side Economics - Econlib
June 27, 2018 - Led by Paul Craig Roberts, Norman Ture, and Arthur Laffer, they argued that high taxes were a major drag on the economy and that the top rates could be reduced without a significant loss in revenue. They became known as supply-side economists.
Discussions

Can someone explain what Supply Side Economics and “Trickle Down” are, and why they are seemingly rejected so much?
Those are political slogans, not economics, despite “economics” in the name. Trickle down specifically was a pejorative used to criticize reducing tax burdens on corporations and wealthy investors. Supply side isn’t a clear set of policies, but presumably they are policies that target aggregate supply (production capability) of the economy but again is largely a political term for policy to directly benefit businesses (suppliers). More on reddit.com
🌐 r/AskEconomics
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November 5, 2024
Why are there supply siders and demand siders but no "it depends" siders?
Why are there supply siders and demand siders but no "it depends" siders? In practice there are only "it depends" siders. Even the so-called "Supply side Economists" (who were a fairly small group) were only saying that the demand side had been overemphasised by Economists before them. Everything in economics is about the interaction of supply and demand. All theories that aim to deal with any significant part of the economy deal with both. Different limitations apply to different parts of the economy at different times. It's not really the same as Liebig's law or the rate-determining-steps in Chemistry. There are some similarities though. More on reddit.com
🌐 r/AskEconomics
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August 28, 2024
CMV: There is no hard data that shows "trickle-down economics" or tax cuts for the highest brackets actually produce jobs and benefit the middle class.
This comes up a lot in economic debate and the problem is that reducing any complex reality to a simple rule will, at best, produce a useful guideline and, at worst, lead to disastrous results. "Trickle down" is more accurately called "supply side economics" because the idea is that more production equals more wealth. That's actually a oretty useful guideline, but it's not an absolute rule. It assumes that there is always latent demand and that if we can produce more, we can create more jobs and more consumption. Stimulating growth becomes about putting more resources into the hands of businesses and entrepreneurs and getting out of their way. Naturally, this approach favours savings and investment to increase productive capacity rather than consumption. The opposite, "trickle-up" economics, is more accurately called "demand side economics" amd the idea is that more consumption equals more wealth. The assumption is that there is always latent productive capacity and that if we can simply stimulate demand, we can increase consumption, jobs, wealth, and use more of our productive capacity. This is an excellent guideline during crises, recessions, and depressions, but not as useful during full-employment when there is little or no unused productive capacity. Naturally, this approach favours consumption at the cost of reducing savings and investments. The idea is to put cash or credit in the hands of those who will spend, not save. Economics, however, is about supply and demand. Both "trickle-down" and "trickle-up" are extremely useful guidelines in different situations, but only looking at one or the other is like trying to drive your car using only the gas pedal or the break pedal. You absolutely need both and it's better to frame them as supply and demand rather than trickle up or trickle down. More on reddit.com
🌐 r/changemyview
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April 27, 2017
Is there a big difference between supply-side and trickle-down economics?
I believe trickle-down is a more specific set of policies within the larger realm of "supply-side economics". While supply-side fiscal policies focus generally on increasing aggregate supply, the trickle-down approach argues that this is better achieved by focusing on policies that favour the upper class and large corporations. For example, a "supply-sider" can advocate lowering taxes in a progressive manner, taxing everybody less but the poor even lesser. While the trickle-down approach would preffer lowering taxes in a regressive manner. More on reddit.com
🌐 r/EconomicHistory
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April 24, 2024
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Investopedia
investopedia.com › articles › 05 › 011805.asp
Understanding Supply-Side Economics: Key Concepts and Impacts
February 20, 2026 - In general, the supply-side theory has three pillars: tax policy, regulatory policy, and monetary policy. However, the single idea behind all three pillars is that production (i.e., the "supply" of goods and services) is more important than other variables in determining economic growth.
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Britannica
britannica.com › money › supply-side-economics
Supply-side economics | Definition, Examples, & Ronald Reagan | Britannica Money
September 1, 2026 - supply-side economics, theory that focuses on influencing the supply of labor and goods, using tax cuts...
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EBSCO
ebsco.com › research-starters › economics › supply-side-economics
Supply-side economics | Economics | Research Starters | EBSCOhost
Supply-side economics is an economic theory that emerged primarily in response to the economic challenges of the 1970s, particularly rampant inflation and stagnant growth. It posits that reducing tax rates for high-income individuals—who are often investors and entrepreneurs—encourages them to produce more goods and services, ultimately stimulating economic growth.
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NYU Stern
pages.stern.nyu.edu › ~nroubini › SUPPLY.HTM
Supply Side Economics - NYU Stern
... It is well known that are among ... Side Economics" was applied to the argument that lower tax rates would improve private sector incentives, leading to higher employment, productivity, and output in the US economy....
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Annenberg Classroom
annenbergclassroom.org › home › supply side economics
Supply Side Economics – Annenberg Classroom
August 3, 2018 - Supply-side economics is an economic theory based on the idea that “supply” (goods and services) drives economic growth. According to this theory, putting more money into the hands of business people, investors and individuals – accomplished by cutting tax rates – creates incentives ...
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Corporate Finance Institute
corporatefinanceinstitute.com › home › resources › supply side economics
Supply Side Economics - Definition, Three Pillars, Laffer Curve
June 30, 2026 - Supply side economics is a field of economic research that believes in reducing economic barriers to production in order to supply excess goods and services, which will, in turn, stimulate demand.
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Center for American Progress
americanprogress.org › home › the failure of supply-side economics
The Failure of Supply-Side Economics - Center for American Progress
August 1, 2012 - Adherents of the economic theory ... that by cutting taxes on the rich we will unleash an avalanche of new investment that will spur economic growth, and boost job creation, leading to economic improvements for everyone...
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MasterClass
masterclass.com › articles › learn-about-supply-side-economics-history-policy-effects
Learn About Supply-Side Economics: History, Policy, and Effects on Taxes and the Economy - 2026 - MasterClass
October 12, 2022 - The theory of supply-side economics holds that the supply of goods and services is the most important factor in determining economic growth, and that governments can boost supply by lowering taxes and reducing regulations on suppliers.
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University of Texas at Austin
la.utexas.edu › users › hcleaver › 304L › 304Lsupplyside.html
Supply-side Economics
To reach the heart of supply-side economics, and the capitalist policies based on it, we must first get beyond two common confusions about its nature. One of these is the notion that supply-side economics is a free market economics opposed to state interventionism.
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Investopedia
investopedia.com › terms › s › supply-sidetheory.asp
Supply-Side Theory: Definition and Comparison to Demand-Side
May 3, 2026 - Supply-side theory, or supply-side economics, holds that economic growth is stimulated through fiscal policies designed to increase the supply of goods and services.
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Bill of Rights Institute
billofrightsinstitute.org › essays › ronald-reagan-and-supply-side-economics
Ronald Reagan, supply-side economics, Reaganomics, economic policy, tax cuts, American economy, 1980s
Supply-side economics, a policy advocating lower taxes and less government regulation of business, gained popularity during the 1970s, a decade in which the U.S. economy suffered from the chronic economic problem of stagflation.
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EBSCO
ebsco.com › research-starters › politics-and-government › reagan-promotes-supply-side-economics
Reagan Promotes Supply-Side Economics | Politics and Government | Research Starters | EBSCO Research
Supply-side economics, a concept popularized during the early 1980s under President Ronald Reagan, focuses on the idea that reducing taxes can stimulate economic growth by incentivizing individuals and businesses to invest.
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Intelligent Economist
intelligenteconomist.com › home › supply side economics explained
Supply Side Economics Explained - Intelligent Economist
April 7, 2025 - Supply Side Economics are aimed at increasing aggregate supply. Successful supply side policies lower the natural rate of unemployment.
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Laffer Center
laffercenter.org › home › about the laffer center › about supply-side economics
About Supply-Side Economics | The Laffer Center
April 19, 2023 - In particular, supply-side economics has focused primarily on lowering marginal tax rates with the purpose of increasing the after-tax rate of return from work and investment, which result in increases in supply.
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Reddit
reddit.com › r/askeconomics › can someone explain what supply side economics and “trickle down” are, and why they are seemingly rejected so much?
r/AskEconomics on Reddit: Can someone explain what Supply Side Economics and “Trickle Down” are, and why they are seemingly rejected so much?
November 5, 2024 -

I have a basic understanding of what they are. Essentially increasing supply (which usually comes from investments from the wealthy) is the best way to economically grow, and that supply “trickles down”.

Now when I hear people say “trickle down economics doesn’t work”, they usually cite studies that say tax cuts for the rich don’t work. But I would imagine that’s because the tax rates for rich people are already low enough that lowering them more doesn’t have a great benefit. I would imagine if the tax rate for rich people were like a 99% wealth tax tax cuts for the rich would be good.

Aren’t these black and white statements really misleading? Yes trickle down economics doesn’t work but that’s because we already have made it so that more tax cuts don’t trickle down as much. And the neoliberalism in the 80s seemed to have helped a lot from stagnation. Isn’t their a balance between supply side and demand side economics rather than saying one is categorically true

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Those are political slogans, not economics, despite “economics” in the name. Trickle down specifically was a pejorative used to criticize reducing tax burdens on corporations and wealthy investors. Supply side isn’t a clear set of policies, but presumably they are policies that target aggregate supply (production capability) of the economy but again is largely a political term for policy to directly benefit businesses (suppliers).
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Study.com
study.com › business › economics
Supply-Side Economics | Definition, Policies & Examples - Lesson | Study.com
October 21, 2013 - Supply-side economics is a macroeconomic theory that argues economic growth and improvement is best stimulated or nurtured by decreasing government regulation, lowering taxes, and therefore allowing for freer trading between individuals and/or entities through an increase in the overall production of goods and services.
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Hoover Institution
hoover.org › research › balance-sheet-supply-side-economics
The Balance Sheet Of Supply Side Economics | Hoover Institution The Balance Sheet Of Supply Side Economics
September 18, 2019 - From the mid-1970s to the early 1980s, a group of economists, journalists, and politicians formed or became adherents of a school of thought called “supply-side economics.” Its three most prominent economists were Arthur Laffer, then at the University of Southern California; Alan Reynolds, then at First National Bank of Chicago; and Paul Craig Roberts, a prominent staff member to various Republican congressional committees and, early in the Reagan administration, the assistant secretary of the Treasury for economic policy.
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ScienceDirect
sciencedirect.com › topics › social-sciences › supply-side-economics
Supply-Side Economics - an overview | ScienceDirect Topics
Supply-side economics is defined as an economic theory that emphasizes the importance of production, accumulation, and supply in driving economic growth, suggesting that enhancing supply can create jobs, increase output, and improve productivity.