What is Supply Side Economics, Trickle-Down
Economics, Reaganomics, Voodoo Economics?
Chances are,
if you have watched the news or have been reading the papers lately, you've
often wondered, what exactly is supply
side economics anyway. If so, you are not alone.
Here is the answer, in a nutshell. But
to really get a better grasp of the subject, please read on.
Supply Side Economics is a theory. The theory contends that lowering
tax rates for the rich will unleash an
avalanche of new business investment by the rich and that investment will, in
turn, spur economic growth, boost job creation, and lead to general economic
growth for everyone.
Please note
that supply side economics, trickle-down economics, Reaganomics and voodoo
economics are all different ways of naming the same idea.
Better Understanding of Supply Side Economics
In order to
better understand supply side economics, you'll need more than just the simple
definition above.
What follows
is an attempt to not only provide you with the simple definition, but to
provide you with some thoughts and insights as to how exactly the concept works
in practice and some additional ideas about whether the concept works as it’s
originators originally intended.
