Definitions for "Supply-Side Economics"
The theory that lowering tax rates will increase economic growth and tax collections. Specifically, tax cuts allow entrepreneurs to invest their tax savings in new jobs and equipment, causing more people to earn more money, who collectively pay more taxes, albeit at lower individual rates. The Laffer Curve was an attempt to graph such a relationship between tax rates and tax collections. To critics in the early 80s who said that tax cuts without spending cuts would increase the deficit, supply-siders claimed that growth would be so tremendous that the economy would simply outgrow the deficit. Early supply-side economists also believed in Say's Law ("Supply creates its own demand"), hence the name, supply-side economics.
A theory of economics that reductions in tax rates will stimulate investment and in turn will benefit the entire society.
The theory that reduced taxation and government regulation will stimulate investment and spur economic growth.
Keywords:  tight, balance, trade, money
tight money trade balance