Supply-Side Economics

Reaganomics was economics policies which were propelled by United States President, Ronald Reagan during 1980s. These policies were based on fours pillars namely; reduction of the growth of government spending, reduction of income and capital gains marginal tax rates, reduction of government regulation of economy, and controlling of the money in supply so as to reduce inflation. Their basic aims were to lower taxes and create a leaner government. According to Reagan his decision was informed on stimulation of the economy taxes, financed by borrowing. Lowering taxes was aimed at reviving the economy, which in turn would see the increased tax revenues being used to offset the debts incurred (Niskanen

Reagan really focused on improving the economy during his presidency, with a plan he called Reaganomics, or supply side economics. The main parts of this plan were cuts on taxes and budgets, and monetary policy. Also, he wanted to reduce government regulation on businesses. He thought that these and increasing defense expenditures would heighten economic efficiency. Reagan managed to cut taxes by twenty five percent in three years. However, the plans did not work out at first, causing a recession that some call “The Great Inflation.” The national debt heightened substantially, and the rate of unemployment reached up to eleven percent. Despite these negative outcomes, the economy experienced a sudden growth and prosperity in 1983, which was

In addition, Reagan’s 1981 Program for Economic Recovery had four major policies, which are: to reduce the growth of government spending, reduce the marginal tax rates on income from labor and capital, reduce regulation, and to reduce inflation by controlling the growth of the money supply (Niskanen). Reagan’s Economic Recovery Program, also known as Reaganomics, was the most serious recession of the U.S. economic policy since Franklin D. Roosevelt’s New Deal (Niskanen). However, according to historian, Eric Foner, there have been many issues with Reaganomics since the new policies, rising stock prices, and deindustrialization inevitably resulted into the rise of economic inequality, also known as the second gilded age (Foner 832).

Reagan implemented policies based on supply-side economics and advocated a classical liberal and laissez-faire philosophy, seeking to stimulate the economy with large, across-the-board tax cuts. Reagan’s outlook on economics was what he and the public called “Reaganomics”. “The blueprint for “Reaganomics,” was a sketched out supply-side approach to the economic, including massive cuts in income taxes, capital gains taxes, and corporate taxes,”(340). His platform advocated reducing tax rates to spur economic growth, controlling the money supply to reduce inflation, deregulation of the economy, and reducing government spending. Reagan's policies proposed that economic growth would occur when marginal tax rates were low enough to spur investment, which would then lead to increased economic growth, higher employment, and wages. Reagan’s beliefs on cutting taxes were supported by ideas of William Sumner who believed that the best equipped to win the struggle for existence was the American businessman, and concluded that taxes and regulations serve as dangers to his survival. Reagan believed strong nations were composed of people who were successful at expanding their empires and these strong nations would survive in the struggle for dominance.

During the last decade of the Cold War, President Ronald Reagan presented a battery of economic reforms influenced by supply-side economics. The reforms of 1981 and 1986 lowered the tax rate for individuals and corporates, introduced deregulations and simplified taxation. The belief in the Laffer curve, which claims that deregulation and lower marginal taxes will increase government revenue and economic growth, justified the reforms in addition to neoliberal ideas. Did Reaganomics, the Reagan application of free market capitalism, encourage social mobility and prosperity for all citizens, or did it let the wealthy retain and develop their economic status

Suppose economists agree that the country has recently entered a recession. Identify one supply-side and one demand-side strategy to help the economy, and explain why it would be used.

Ronald Reagan’s presidency was coined as the “Teflon presidency” referring to how many criticisms were made about his administration’s policies that did not affect his approval ratings. Reagan was also stated to have the skill as a media communicator which enforced his appeal aiding to the success of his administration. In his time in office, Reagan supported supply-side economics through policies, some of which reduced taxes to encourage business expansion. Through reducing taxes this theory was stated to then “lead to a larger supply of goods to help stimulate the system as a whole…” (Nash 918). Even though all taxpayers ended up receiving tax relief, it was skewed- the rich were said to have gained more than those of lower incomes (Nash

Economic policies that we see today arose out of necessity during the Renaissance period. As individual states formed and trading of individual goods began; a system was needed so that goods could be exchanged without collapsing the currency of any of the realms. The same concept is true of economic policy today. Regulations are required so that we can trade goods while not causing inflation. It effects the prices of goods and how readily available they are. If it is being managed well, then we have access to products from around the world. It also keeps the U.S. dollar from losing value. There are three common approaches used in our country today: supply-side economics, demand-side economics, and monetary policy.

Why are economic policy so important? To evaluate it, people have to look at the policies inside it. The supply-side, demand-side and monetary are all within economic policies.

To overcome poverty and the flaws of the economic crisis in our society, we need to envision our social life. We have to free our mind, imagine what has never happened before and write social fiction. We need to imagine things to make them happen. If you don't imagine, it will never happen. (Muhammad Yunis) Economic policy refers to the actions that governments take in the economic field. It covers the systems for setting levels of taxation, government budgets, the money supply. The three topics I will be discussing are supply-side economics, demand-side economics, and monetary policy, and how they affect the economy and why they are important.

The common goal of an economist is to continue economic growth and have stabilized the economy. They both just want the end goal to be that they want growth without price inflation. Two types of methods are Demand-Side Policies and Supply-Side Policies. Demand-Side policies are policies that are federal policies. They are designed to increase or decrease what is in demand to fluxgate sales. Supply-Side policies are designed to stimulate output and lower employment. I agree with the economists who believe in Demand-Side Policy. Although both policies have the same end goal which is to make the economy stable and lower unemployment. They go by a fiscal policy this policy is how the government attempts to stabilize the economy. They do this through

There are many advantages to the Supply-Side Economics and the first one is Lower Taxes. Lowering taxes is one of the main bases and ideas for the supply side economics. By having the lowering of taxes it will provide an incentive to earn more by allowing people to keep more of their well-earned money. Also, another huge advantage of the supply-side economics is that it urges the claim that high marginal tax rates encourage individuals to shelter their money from taxes. Also, if they were to cut tax rates investors will be able to take some extra out and invest it into other things that will allow them to make even more money. Although, there are many advantages to having Supply-Side economics there are also many weaknesses that the policy possesses. The first weakness is the reduction of unemployment benefits, if the economists were to cut the tax rate then it would make it harder for those who are unable to work to get their unemployment checks and will force them to try and find work. Cutting taxes would make life easier for those have more, and harder for those who have less. The Supply-Side Economy is mostly a huge advantage for the rich and a huge disadvantage for the poor, because they are not able to receive lots from unemployment due to the government not receiving lots of money in taxes.

The following essay will compare Ireland with respect to inequality and poverty to the United States and the United Kingdom. I will use the country’s Gross Domestic Product (GDP) in order to analyse their position in the world’s economy; identify how to measure poverty; the main reasons for poverty and inequality in these three countries; use graphs and references to illustrate my evidence; and then finally give a brief conclusion to my essay. Anyone who sets out to

The primary concern of economics is demand and supply. Basically, demand is depends upon prices of products or you can say that demand is inversely proportion to price so, as the prices decreases demand starts to increase. However, supply has direct effect at demand, more people starts buying products more will be the supply. The concepts of demand and supply are central to Microeconomics. Here is one of the journals which describes about energy demand and energy supply by estimating long and short term demand elasticities. The given journal is published by John T. Cuddington* and Leila Dagher in IAEE (International association of exhibitions and events).

Q1. Define micro and macro economics, Distinguish between them, and explain the scope, importance and its limitations