macroeconomic theory
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
1 week 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
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November 5, 2024
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
ELI5: What is supply-side economics and why is there such opposition to it?
Ultimately, a lot of these explanations are just plain wrong, and based on what politicians want you to think supply side economics is. This explanation is not going to be particularly ELI5 (I'll try) but will be accurate, unlike the wrong/misleading answers posted before. Supply side economics is making people make more stuff by making it easier for them to make stuff. This includes: Investment in education Good, available healthcare Large public sector investment in infrastructure Subsidised natural monopolies to bring prices down to marginal cost Minimising disruptive taxes Government regulation when necessary to create competitive markets Politicians generally when they mean supply side policies really mean cutting taxes and regulation. Worse, they normally mean cutting regulation to reduce competitiveness (which is an anti-supply side policy) and reducing taxes such as corporation tax, a tax which has almost no affect on economic activity (which means it isn't a supply side measure). TL;DR: No economist is against supply side measures. Actual supply side measures are either a) already being done, b) politically unpopular, or c) uncertain in their effect. Meanwhile, politicians lie through their teeths about economics. Source: Actual economics degree. More on reddit.com
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January 23, 2016
Did supply side economics work? : r/AskEconomics
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Investopedia
investopedia.com › articles › 05 › 011805.asp
Understanding Supply-Side Economics: Key Concepts and Impacts
February 20, 2026 - Keynesian economics is demand-side, emphasizing consumer demand as an economic driver. The theory of supply-side economics maintains that increasing the supply of goods and services is the engine of economic growth.
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NYU Stern
pages.stern.nyu.edu › ~nroubini › SUPPLY.HTM
Supply Side Economics
... 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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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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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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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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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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Indeed
indeed.com › career-advice › career-development › supply-side-vs-demand-side
Supply-Side Economics vs. Demand-Side Economics: Definitions and Examples
Supply-side economics describes when wealthy individuals or large corporations receive tax cuts. The hope is that these individuals use tax cuts to their advantage to make investments, hire additional employees and complete other business ...
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Britannica
britannica.com › money › supply-side-economics
Supply-side economics | Definition, Examples, & Ronald Reagan | Britannica Money
May 3, 2026 - supply-side economics, theory that focuses on influencing the supply of labor and goods, using tax cuts...
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Rogue Valley Times
rv-times.com › home › what is supply-side economics? definition & history
What is supply-side economics? Definition & history | Rogue Valley Times
February 27, 2025 - Supply-side economics is a macroeconomic theory that focuses on supply-side factors serving as the driving force of a nation’s economy, leading to an increase in economic output and business and job creation.
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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 - The broader supply-side policy mix points to the importance of sound money; free trade; less regulation; low, flat-rate taxes; and spending restraint, as the keys to real economic growth. These ideas are grounded in a classical economic analysis that understands that people adjust their behavior when the incentives change.
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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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Equitable Growth
equitablegrowth.org › home › neither history nor research supports supply-side economics
Neither history nor research supports supply-side economics - Equitable Growth
July 2, 2019 - He contended tax cuts would lead to so much investment and economic growth that they would end up generating at least as much government revenue as they cost. In other words, he said tax cuts would pay for themselves. The magical thinking sold to the American people was that giving tax cuts to the rich would improve the lives of the majority. Laffer’s theory provided a foundation for supply-side economics and was illustrated by the Laffer Curve, which he famously drew on a paper napkin for then-White House Chief of Staff Dick Cheney in the 1970s.
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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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CFA Institute
rpc.cfainstitute.org › research › financial-analysts-journal › 1981 › supply-side-economics
Supply-Side Economics
September 1, 1981 - Demand analysis, which has dominated American economic policies over the past 30 years, basically assumes that people work because they have jobs, not because they are paid, and that people save because their incomes are high, not because they earn an after-tax yield on their savings; incentives ...
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EBSCO
ebsco.com › research-starters › economics › supply-side-economics
Supply-side economics | Economics | Research Starters | EBSCO Research
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 ...