Supply-Side Theory

Supply-Side Theory
An economic theory holding that bolstering an economy's ability to supply more goods is the most effective way to stimulate economic growth.

Supply-side theorists advocate income tax reduction because it increases private investment in corporations, facilities, and equipment.


Investment dictionary. . 2012.

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  • Supply-side economics — is an arguably heterodox school of macroeconomic thought that argues that economic growth can be most effectively created using incentives for people to produce (supply) goods and services, such as adjusting income tax and capital gains tax rates …   Wikipedia

  • supply-side — ☆ supply side [sə plī′sīd΄ ] adj. designating or of a theory that economic growth can be achieved by stimulating investment, with the money for investment being made available chiefly through tax reductions …   English World dictionary

  • supply-side economics — A theory of economics that reductions in tax rates will stimulate investment and in turn will benefit the entire society. Bloomberg Financial Dictionary * * * supply side economics supply side economics ➔ economics * * *    A theory in economics… …   Financial and business terms

  • supply-side economics — noun the school of economic theory that stresses the costs of production as a means of stimulating the economy; advocates policies that raise capital and labor output by increasing the incentive to produce • Hypernyms: ↑economics, ↑economic… …   Useful english dictionary

  • supply-side —  ̷ ̷ ˈ ̷ ̷ ¦ ̷ ̷ adjective Etymology: supply (II) + side (I) : of, relating to, or being an economic theory that recommends the reduction of tax rates especially in the highest brackets to encourage more earnings, savings, and investment to… …   Useful english dictionary

  • supply-side economics — Theory that focuses on influencing the supply of labour and goods, using tax cuts and benefit cuts as incentives to work and produce goods. It was expounded by the U.S. economist Arthur Laffer (b. 1940) and implemented by Pres. Ronald Reagan in… …   Universalium

  • supply-side — adjective Date: 1976 of, relating to, or being an economic theory that reduction of tax rates encourages more earnings, savings, and investment and thereby expands economic activity and the total taxable national income • supply sider noun …   New Collegiate Dictionary

  • supply-side — /seuh pluy suyd /, adj. Econ. of or pertaining to a theory that stresses the reduction of taxes, esp. for those of higher income, as a means of encouraging business investment and growth and stabilizing the economy. [1975 80] * * * …   Universalium

  • supply-side economics — /sə plaɪ saɪd i:kəˌnɒmɪks/ noun an economic theory that governments should encourage producers and suppliers of goods by cutting taxes, rather than encourage demand by making more money available in the economy (NOTE: takes a singular verb) …   Marketing dictionary in english

  • supply-side economics — /sə plaɪ saɪd i:kəˌnɒmɪks/ plural noun an economic theory that governments should encourage producers and suppliers of goods by cutting taxes, rather than encourage demand by making more money available in the economy (NOTE: takes a singular… …   Dictionary of banking and finance

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