What is supply side theory? It’s to do with Econ.
if you have a factory, would you work on making it produce more, or work on getting people to buy your product? Classical economists think you should produce more (supply side), while Kenesians think you should focus on the demand side.
I thought supply side economics was very close to kenesian theory? In supply side econ, the supply of goods is a major focus so and consumption and demand come after teh goods are produced. Also supply side favors lowers taxes.
hey dreary thanks for that… However I’ve read and understood that classical economists believe that changes in S&D are driven primarily by tech over time and the fed should keep taxes to a min to aviod recessions etc. How does this tie in to supply side economcis? Is it the same thing?
Supply siders- address tax- if you have more tax, less govt tax collection (hence laffer curve) people work less , AS decreases.