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
4 weeks ago - The term is contrasted with demand-side economics. Supply-side economics developed in response to the stagflation of the 1970s. It drew on a range of non-Keynesian economic thought, including the Chicago School and New Classical School.
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Econlib
econlib.org › home › cee › supply-side economics
Supply-Side Economics - Econlib
June 27, 2018 - Some use the term to refer to the fact that production (supply) underlies consumption and living standards. In the long run, our income levels reflect our ability to produce goods and services that people value.
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
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
🌐 r/explainlikeimfive
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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
January 16, 2005 - 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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Indeed
indeed.com › career guide › career development › supply-side economics vs. demand-side economics: definitions and examples
Supply-Side Economics vs. Demand-Side Economics: Definitions and Examples
December 19, 2025 - 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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Fiveable
fiveable.me › all key terms › ap us government › supply-side economics
Supply-side Economics Definition - AP US Government Key Term | Fiveable
Supply-side economics aims to stimulate economic growth primarily through tax cuts and deregulation. By reducing taxes for businesses and high-income individuals, this approach encourages them to invest more into production.
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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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Find elsewhere
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Center for American Progress
americanprogress.org › home › take a walk on the supply side
Take a Walk on the Supply Side - Center for American Progress
September 12, 2008 - Like many ideologies pushed to an extreme, supply-side theory does contain a kernel of truth: In certain circumstances lower tax rates can lead to additional economic activity and can lead to additional government revenue. This is a standard incite in public economic theory.
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King Center on Global Development
kingcenter.stanford.edu › publications › working-paper › increased-understanding-supply-side-economics
Increased Understanding of Supply Side Economics | King Center on Global Development
For developing countries, important lessons have included the need for relying on the international trade as an “engine of growth”, the importance of reasonably stable macroeconomic policies, and the need for appropriate incentives for economic activity. These lessons have been learned both through experience and through analyses of successes and failures.
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Investopedia
investopedia.com › terms › s › supply-sidetheory.asp
Supply-Side Theory: Definition and Comparison to Demand-Side
May 30, 2025 - The 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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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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IPPR
ippr.org › articles › modern-supply-side-economics-a-new-consensus
Modern supply side economics: A new consensus? | IPPR
January 9, 2024 - A new consensus is developing in economic policymaking. After decades of market-based neoliberalism, this fresh consensus – variously described as modern supply-side economics, productivism, or ‘securonomics’ – is taking root on both sides of the Atlantic.
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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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Lumen Learning
courses.lumenlearning.com › suny-macroeconomics › chapter › choice-of-policy
Reading: Supply-Side Economics | Macroeconomics
Supply-side economics is the school of thought that promotes the use of fiscal policy to stimulate long-run aggregate supply.
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Quora
quora.com › What-is-supply-side-economics-and-how-has-it-worked-historically
What is supply-side economics, and how has it worked historically? - Quora
Answer (1 of 47): supply side economic is a macroeconomic theory that postulates economic growth can be most effectively fostered by lowering tax and decreasing regulation. Demand side economic is the position describing that economic growth ...
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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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UT Austin News
news.utexas.edu › home › archive › we need to move on from supply-side economics
We Need To Move On From Supply-Side Economics - UT Austin News - The University of Texas at Austin
November 21, 2025 - The former deals with central bank monetary policy while the latter, associated with the still unproven Laffer-curve theory — where tax cuts would pay for themselves by promoting growth — deals with fiscal policy. Two totally different kinds of policies that could each be economically beneficial when pursued in moderation, but damaging when misused. The legacy of supply-side economics is easy to see.
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Democracy Journal
democracyjournal.org › magazine › 29 › burying-supply-side-once-and-for-all
Burying Supply-Side Once and for All : Democracy Journal
November 30, 2020 - Supply-side economics assumes that lower tax rates boost economic growth by giving people incentives to work, save, and invest more. A critical tenet of this theory is that giving tax cuts to high-income people produces greater economic benefits ...
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Britannica
britannica.com › money › supply-side-economics
Supply-side economics | Definition, Examples, & Ronald Reagan | Britannica Money
1 week ago - supply-side economics, theory that focuses on influencing the supply of labor and goods, using tax cuts...
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The Balance
thebalancemoney.com › supply-side-economics-does-it-work-3305786
Supply-Side Economics: Definition, Does It Work, Examples
November 14, 2019 - Supply-side economics is a theory that recommends lower taxes and deregulation to increase the supply of capital, jobs, labor, and entrepreneurship.