SUPPLY-SIDE
POLICIES
Government measures to stimulate economic production by giving tax breaks to corporations and the wealthy on the theory that they will increase investment and thus create jobs
Example:
“Reaganomics” in the 1980s – which resulted in higher taxes on
lower-income people, lower taxes for the rich, and the deregulation of banks and
other financial institutions (This had the effect of increasing economic
inequality and unemployment because the corporations did not produce new jobs in
the