supply-side economics

/səˌplaɪ ˌˈsaɪd/

Supply-side economics is the theory that lower taxes, less regulation of businesses, and free trade stimulate production and improve a country's economy.

Economists who favor the theory of supply-side economics believe that if there are more goods and services, the economy will grow — and that the best way to boost production is to lower taxes, especially on wealthy people and businesses. In other words, the concept focuses on supply, rather than demand. Critics of supply-side economics argue that cutting taxes only increases the wealth of a minority, without boosting incomes and employment for most people.

Definitions of supply-side economics

1. 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
   type of:

   economic science, economics, political economy

   the branch of social science that deals with the production and distribution and consumption of goods and services and their management