Supply-side economics

Community Leader
Registered: 09-14-1997
Supply-side economics
18
Mon, 02-15-2010 - 10:39am

An economic theory which holds that reducing tax rates, especially for businesses and wealthy individuals, stimulates savings and investment for the benefit of everyone. also called trickle-down economics.
http://www.investorwords.com/4825/supply_side_economics.html

Proponents believe that reducing tax rates increases labor, since people have more incentive to work and more places to work since investment also increases.

Opponents believe that reducing tax rates increases the wealth of the businesses and wealthy individuals at a disproportionate rate to increasing the wealth of the middle class and the poor.

What do you believe?

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iVillage Member
Registered: 01-12-2004
Mon, 02-15-2010 - 10:48am

I believe (actually, I know) we tried it during the Reagan Administration and it does not work.

iVillage Member
Registered: 12-16-2008
Mon, 02-15-2010 - 10:55am

""It does not work.""


iVillage Member
Registered: 09-10-2009
Mon, 02-15-2010 - 12:16pm

Except it did not work.

iVillage Member
Registered: 02-14-2010
Mon, 02-15-2010 - 4:04pm
I believe there are many aspects effecting economic growth, taxes being one of them.
iVillage Member
Registered: 02-14-2010
Mon, 02-15-2010 - 4:24pm

You are relying on erroneous information from spin masters.


Supply side economics is clearly correct.

iVillage Member
Registered: 02-01-2010
Mon, 02-15-2010 - 4:46pm
Obviously, if you have more money, you spend more money. For individuals that means consumption that grows the economy and revenue via taxes for the government. For businesses that means consumption that grows the economy and job creation and revenue via taxes for the government.
iVillage Member
Registered: 02-01-2010
Mon, 02-15-2010 - 4:53pm
Exactly right. As a former business owner, whenever we experienced a long-term influx of revenue, the first order of business for our business was to look for ways of improving or growing the business.
iVillage Member
Registered: 01-12-2004
Mon, 02-15-2010 - 7:13pm

Our experiment with supply side economics was in the first half of the 1980s (the first Reagan Adminstration).

iVillage Member
Registered: 01-12-2004
Mon, 02-15-2010 - 7:15pm

I'm not sure where you got your economics education, but a couple of industry-specific cases of regulation or subsidy (and the nuclear power industry is HIGHLY subsidized, along with being regulated) are not examples of supply side economics.

iVillage Member
Registered: 10-27-2009
Mon, 02-15-2010 - 7:18pm

Hmmm, so what you're saying is that if you had more revenue you thought of expanding the business,

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